General Electric Company has not been going through the best of financial times due to low profitability levels and extremely low demands. The company’s poor performance can be judged from the fact that GE was named as the worst performer of 2017 in the Dow Jones Industrial Average. The company has not only suffered in terms of its decreasing sales and reducing profits, the image of the organization has also been damaged due to job cuts.
In 2017, General Electric had to delayer several layers of its manpower in order to minimize its cost and save the financial resources to set its balance sheet right. The company has announced to cut down more than 12000 more jobs which accumulate to the level of total 19242 jobs that the company reduced this year which is shocking and shameful.
The slow pace of demand and increasing idle inventory has forced the company to take such severe measures but such decisions have met with a lot of criticism from the labor unions as well as different media outlets. In recent times, the cutting off of jobs is nothing new, while GE topped this list, Macy’s Inc occupies the 3rd position in this list with cutting almost 10000 jobs due to the closure of its more than 65 stores. The fall in demand is primarily due to the spread of e-commerce services and inflationary conditions in the American markets.
Trump promised to increase jobs in America after becoming the President but till now, the results aren’t even close to the promises made with the American public.