GE to cut $20 billion from its businesses

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BOSTON — GE officials seek to cut more than $20 billion worth of businesses from the industrial conglomerate's portfolio within the next two years, the Wall Street Journal reports.

Journal reporters cite third quarter earnings statements from the locomotive and jet engine maker which slash the company's cash-flow outlook by $5- to $7-billion. GE managers have cut $1.2 billion in costs from business units so far this year, surpassing the original $1-billion goal.

In earlier reports, GE CEO John Flannery said that every business unit and business practice is up for review. That includes expensive annual retreats to Florida and a small fleet of business jets, both of which have been cut under Flannery.

Earlier this year, GE Transportation announced it will transition all locomotive production from near Erie, Pa., to Fort Worth, Texas, by the end of 2018, in part as a cost-cutting move. GE representatives said at the time that GE will remain open in Erie producing parts and working on other non-locomotive projects.
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