General Electric Co.'s (GE) Aviation business unit said Monday it is planning "permanent" job cuts that will bring its total workforce reductions to 25% in 2020. GE's stock fell 3.9% in morning trading. GE Aviation said the cuts come as global commercial airline traffic in the second quarter is expected to drop by about 80% from levels seen in early February as a result of the coronavirus pandemic. "Our aircraft manufacturers have announced reduced production schedules that will extend into 2021 and beyond reacting to the projected prolonged recovery," said GE Aviation Chief Executive David Joyce in a business update. "While extremely difficult, I am confident this is the required response to the continued contraction of the industry, and its protracted recovery." GE said last week when it reported first-quarter results ( ) that Aviation was developing a plan to cut costs by $1 billion and implement $2 billion of cash actions this year, including anticipated job cuts. GE expects the plans to be ready "over the coming months." GE's stock has shed 50.4% over the past three months while the Dow Jones Industrial Average has lost 18.6%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 04, 2020 09:57 ET (13:57 GMT)
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