The Ax Falls Tomorrow at GE Capital

Tomorrow is January 8, and for many GE Capital employees, that means D-Day.

peHUB reported in December that the GE Capital and its mid-market lending subsidiary, GE Antares, had suspended a planned round of planned layoffs until January 8, in order to implement a new, lower severance package plan. We haven’t been able to confirm specifics, but rumors are that the severance package may be less than two weeks salary for each year of service.

Perhaps the pitiful severance package isn’t surprising, given the pressure on financial firms to curb executive pay. But since GE has not recieved any TARP money yet, that’s hardly a valid excuse.

As you probably know, GE Antares’ layoffs are part of a giant restructuring plan to shrink General Electric’s exposure to the financial services industry, making GE Capital a smaller part of the conglomerate’s business by about 20%. The official headcount for both GE Capital and GE Antares hasn’t been revealed (although we heard a low estimate of 18 for GE Antares). So, tipsters, if you’re out there, please let us know.

Also interesting will be GE’s supposed return to market. Despite adamant denials, the firm was reported to be out of the market for much of Q4 last year (the definition of “in the market” got very fluid in the process, let me tell you.) But the firm, which typically leads middle market league tables, is expected to take on new deals this year. Depending on the depth of the cuts, that leading position could change.

In December GE Capital let go 50 to 75 people from its heath care and financial services group.

Previously: GE Capital Layoffs On Hold For New Severance Policy

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305 Comments

  • “So, tipsters, if you’re out there, please let us know.”

    This is your quote. Let me ask you something: how is it a benefit to anyone that would be a tipster (i.e. GE insider aka GE employee) to reveal any information on this supposed mass layoff tomorrow (which could be entirely false)? Do I get a secret decoder and a cool nickname if I provide you information? Is Deep Throat running your rag now? There is no upside and only puts the individual at risk.

    I am excitedly counting down the days where the peHub breaks out its new segment called “CEOs! They’re just like us!” ala US Weekly. Great reporting.

    (Yes, this has been a negative review)

  • No, the severance policy was not reduced for 2009. There have been layoffs and it looks like this will continue in January. I work for the company and am concerned for myself and feel sorry who has lost their job. The financial markets have shrunk and GE Capital is forced to respond.

  • Regarding the first comment: The link I posted is for completely anonymous tips (that we then corroborate with sources), so it would not put the individual at risk.

  • No layoffs here in another division of GE capital. I havent heard a thing. And, FinWkr is correct, there was no reduction in the severance package.

  • I was axed from GE Antares last year and got 1 week per year of servitude.
    So is a further reduction possible?
    The layoff package already sucks. But given GECC culture and GE Antares hubris, I suppose they can always make it worse.

  • Um..yes there was a reduction to the severence package. They sent out an e-mail 2 days before Christmas stating the changes to the layoff policy effective 01/01/2009. They cut our 60 day notice to 30 working days. Then they gave you a lump sum amount depending on your career band. The e-mail said it was due to IRS regulations or something of that nature. I know people in 3 different divisions of Commercial Finance across the country, and we all received the same e-mail. So maybe it was not in YOUR GE division, but it it did happen.

  • And no layoffs today…everyone is suspecting it will be tomorrow or next week. After Immelt’s call.

  • GEgirl, Yes, I got the same letter. You are correct, they took 30 days of paid non-work time away. I was referencing more the weeks of pay for service which was not reduced for 2009. Also, I thought the extra lump-sum payment was worth more than the 30 days pay, so actually I viewed it as an increase. At least, that is how my math works out, YMMV.

    Lets hold on to our chairs until tomorrow and see what happens, we are all sweating it here and havent heard a thing. Very tight-lipped about this one.

  • Yes, the 2009 lay offs package has been reduced for employees receiving it! We would suggest if you receive the lay off notice to take the lay off agreement to a lawyer for his comments. Lots of glitchs in this agreements that GE Capital is trying to take away from employees. After all…NBC News would love to hear some poor choices made by GE…which Senior Management is trying to sweep under a rug. If you do need an attorney…an excellent recommendation would be David Sanford, Esq…the law firm name is Sandford, Whittels & Heisler! I’m using David for a lawsuit that GE trying to denied and falsify my personnel file, however, any compliance issue that occur during my employment, I printed a copy and kepted a personal file at home! It was well worth all my efforts :)

    The next BIG lay off day is set for January 15th! That is if they don’t find another glitch in the lay off package :( )

    Be very careful…GE will try to turn issues around!

  • Everyone gets 30 days working notice
    Everyone gets “x” weeks based on their career band
    Everyone gets 1 week per year of service up to 15 years, at which point you receive 1.5 weeks per year of service.
    There are layoffs coming.
    Worrying about it is futile.
    Stop obsessing and try working instead.

  • Go blame Big “OIL” that is where this mess all started. Remember !!!

    GE has been very good to my family, Thanks GE it has been a nice trip , Hope we can get back on board when this mess is all over.

  • The new OPTIONAL severence package in addition to the old one is based on GE Band, and actually, it GREATLY benefits thouse that have only been at GE for a few years.

  • Sorry, was confused, I thought it was an either or with the severence package, but its actually on top of, and it actually benefits those getting the axe.

  • Facing a layoff is difficult when you consider that none of it is within your control. The financial business sector is unpopular made so by a bunch of risky lenders not GE.

    Unsound business practices, and risky lending by other companies is affecting many people at GE not fair by any account.

  • So…let’s review shall we? peHub here has predicted falsely for at least the 2nd or 3rd time what day the “axe will fall”. They’ve criticized GE based on rumors regarding layoff packages, when in fact, the package changes actually are an additional benefit in cases AND were in response to keeping compliant with IRS tax law.

    How about you stop being a gossip queen Erin? We’re ALL worried about our jobs. GE Capital is going to have layoffs – this isn’t breaking news, its reality and nothing surprising given the industry and economy. How about instead of leading a betting ring on the layoff date you focus on talking about topics that don’t add undue and false stress to people.

  • ~~ BREAKING NEWS ~~ The OFFICIAL lay off notice will be on Tuesday, January 13th!

    Please read this article…”Satyam Chairman admits he cooked the books” link is provided below.

    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/01/07/BUSF155CVH.DTL

    This is the outsourcing company from India….that GE uses to take away jobs from American people and give it to a strange country! “In recent years, the vast majority of tech companies have used India for LOW-COST, HIGHLY EDUCATED LABOR. How much the Satyam scandal will affect those relationships remains to be seen.”

    Well if you Senior Management would not be greedy with your salary and bonues…you would not need to go to INDIA for low-cost, highly educated labor!!!!!

    GE we hope that Satyam scammed every penny away from YOU!!! You truly deserve this scam for forcing your employees to call INDIA and not understand a word they say!

    Satyam…..YOU GO!!!! Go and scam more money from Jeff Immelt’s salary and bonus :)

  • Very well put “ABFN”, My thought exactly!! GE has some very high quality employees. Who the heck is ERIN GRIFFIN ? Can she guess my lottery numbers for me ?

  • Sorry I meant “ERIN GRIFFITH”

  • I think Erin Griffith is a reporter named Erin Griffith. Who the heck are you “Cub C?”

  • GE Energy Financial Services (EFS), a division of GE Capital, laid off between 50-70 people in Stamford on Jan 7th, 2009. More is coming in its London office the following week. This was one of the first waves of layoffs for GE Capital in the coming weeks. The severance is indeed reduced to 1 week per year of service plus between 6-12 weeks depending on titles. EFS had a record year in 2008 making $800 million. But mgmt foresees tough time ahead making only about half of that in 2009. EFS also promised to pay off 2008 bonus to staff including laid-off employees in February. But people who were let go are very concerned that they would receive a much smaller pool because they are already laid off and people who didn’t lose jobs would get a bigger bonus. That is, like Bernie Madoff, stealing other people’s money and putting into their own pockets. Many people are talking to their legal counsels.

  • Correct to the above information. EFS laid off 50 ppl in Stamford, I’m not sure what will happen in the London office. If you’re planning to take actions, please go to Sandford, Whittels & Heisler they’re based on Third Avenue, NY, NY – We can all do one claim. Also, some employees are planning to take legal actions on Jeff Immelt for providing wrong information on how the GE is doing in 3rd Qtr. I have a friend that is the above law firm, and I hear they also are handling the Lorene Schaefer case too. I was told the more employees the better the package is.

    Speaking about Bernie Madoff above….do you know if GE 401k was/is invested with Madoff Investments? Just an FYI…if you do not sign your lay off (GE) release agreement, you’re still entitled to unemployment…DON’T let HR managers talk you into signing. HR/Your manager will work on protecting GE and not YOU….be very careful and don’t say much cuz it will be used against you….

  • I have a friend at ge capital in Stamford who got laid off last Wednesday (1/7/09). He was among about 50 people. So the peHUB report in dec has been all the way true. So let’s give credit where credit is due. My friend has asked a lawyer to take a look at the severance letter. Like some posts here said above, there are glitches, but mostly traps. For example, the 2008 bonus was in the letter. But it was written so vague such that if you sign it, you may only get a fraction of what you expected/deserved on bonus and loss legal recourse. A law firm such as mentioned above can certainly help you to make sure you are protected before you sign anything.

  • Let’s face it…word and/or rumor is lay off started this week at GE Capital, and it will continue until the end of Jan. 09! For the people that got hit first with the lay off notice…they’re glitches as far as clawback clauses…that HR is working on updating the severance package. Also, the email regarding new IRS laws…is to protect GE from a tax break…it’s NOT to benefit the employee.

    One think I don’t understand in the Corporate World, and I don’t know if I ever will in my life time! If GE Capital needs to cut $2B why in the world is HR working on bonus planning for Senior executive and why are employees currently receiving raises?? I guess it’s all about greed?

    A good questions about 401k accounts…does any one know the answer??

  • Don’t give Erin such a hard time. Ever since the “Divorce” she has had the need to express herself in an exclusive mannor in regards to having the inside scoop. I’m sure if any of you hecklers found your spouse in a trailer park with some other woman you would feel the same.

  • Just kidding about the above post. I’m just frustrated myself also about the layoffs coming , I do not know erin or any of the other posters , just disregard the above post

  • SORRY Erin , I just need to face reality that I probally will be laid off with a lot of other people , I Did not mean to post the message. I really don’t know you I just felt bad about the bad news you posted that is going to be a reality next week at my work, and was looking to vent at someone . Sorry again ,

  • KEY POINTS ON THE SEVERANCE LETTER:

    a. It might be unlawful for GE to designate the last “official” employment date (laid off ppl given 1 week for transition) as the letter signing deadline date.

    b. 08’ bonus is “determined” by GE, which could be zero (- anyone still delusional?). If you sign the letter, you accept this fact and have no way to appeal.

    c. The lump sum or bi-weekly option is designed to keep laid off ppl “checked” on a bi-weekly basis in case someone decides to file suit.

    By law, GE cannot take away your rights to sue even if you sign the letter (not the release). But you DO lose some points later on by signing it.

  • I love the Name…Ladoff by Madoff says: How about health benefits? How many months of benefits are they offering?

    HR made a huge mistake on the number of employees to be lay off! Rumor is if they lay off massive employees they can’t function…this is why they’re planning week by week for each business.

    A few questions on the above:

    a) only 1 week for transition…what happen to the 30 day rule?
    b) if you’re entitled to a bonus…don’t sign the release agreement until they tell you your bonus amount (get a lawyer)…the best thing you can do for you. In your release agreement, if any bonus is mentioned than you’re entitled to a bonus…no different..you worked in 2008 and you’re entitled.
    c)I believe if you choose the lump sum…GE save time and money!

    Heads Up: If we all don’t sign the release agreement, and file suit…Headquarters will NOT be able to handle all claims. It may be a good choice on our apart, and if the State of CT unemployment office receives all these claims…they will raise an issue with GE!

    I have a friend that worked at UBS in Stamford…and she has filed a claim with USB and the State of CT…many employees did. Both UBS and the unemployment office can’t handle the load of work! She didn’t sign the release agreement and is receiving unemployment benefits. Don’t listen to HR say…if you don’t sign this agreement you don’t receive nothing! Don’t be surprise if you have problems reaching the State of CT – unemployment office.

    I was thinking for the employees in Fairfield County (Stamford, CT)…do you think it’s a great idea to meet at Bull’s Head Dinner on High Ridge Road in Stamford? Just like the old days :) ? Let’s vote? Since we will have plenty of time now…we can set up a date and time to meet …? YES…No?

    Ok…back to family now…can someone get back to me on the benefits question above? Thank you!

  • TO: Ladoff by Madoff:

    Thanks for sharing the key points!

    We should all compare notes and make sure the release is the same for all? Yes, how about benefits? Benefits must be the same for all of us.

    Great point to GE employee in la la land… you’re correct…Headquarters will NOT have man power to handle these cases!!!

    P.S.: Sorry I may be wrong….GE might outsource this work to INDIA…LOL!!! Check out this story: GE uses Satyam Corp to outsource the work to India…..This is the reason why…when you call the 1-800-GE- INDIA number you can’t understand one word they say….
    http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/01/07/BUSF155CVH.DTL

  • To “A GE emp in la la land”, laid off workers receive 12 months of health benefits. If you’ve been at GE for more than three years (I think that’s the cut off), those health benefits are gratis. For those with less than three years of service, you have to pay the standard contribution you’ve been paying. All the layoff benefits are detailed in the online benefits handbook (benefits.ge.com).

    Also, re: your question on the one week transition, I understand everyone was paid for 30 days of work but only had to work for an additional week. Then add on the lump sum payment based on career band and the severance based on years of service, per “Betty Boop”.

  • To: Layoff Benefit expert –

    Thank you very much for the benefits information.

    I will feel more relaxed when I get ax this coming weeks. Benefits are very important to me….don’t get me wrong…Money is important too…however, when you have a family the benefits plan can turn into $1,000 per month payment.

    I vote for YES….let’s meet at Bull’s Head Dinner? When?

  • GE Cap has stated it plans to cut $2B and has already lbegun “reorganizing”. It seems to me one can rearrange deck chairs on the titanic all day long but to reduce costs means to throw people overboard. I agree that layoffs are not a theory but an inevitability. The only question is where and how many.

    At our site, there’s some rustling going on in the big boss’s office. It sounds like he’s getting ready for a big meeting (or several) over the next few weeks. I wonder how they announced the layoffs in Stamford… Anyone know?

  • To: GE MINI MOUSE –

    I have seen lay off in June 08…which I survived. This is how it happen in Stamford, CT – Because of the small amount of lay offs in June 08 the HR Manager and your report manager call you in a meeting. However, since this time around they’re massive lay offs I have seen it like this….Your direct manager calls you in and tell you news and gives you your release package for your to review. I hope this helps!

  • If they’re laying off an entire team or office, they will do the layoffs en masse. Last week, they shut down a GE Capital Americas front-end office in Dallas and called everyone into a room to lay them all off at once. It was probably 20-25 people, and they were told their paperwork would be coming.

  • Maybe you still try to recover from the shock when you walked into your boss’s office last Wed. and saw the HR person was already waiting there. You were stunned and asked them “why me?”

    They told you a well-prepared lie (performance, tenure, and skills). You wonder in reality whether you’re too old, or you’re too new, or you were from another country, or you never played politics, or you were in the wrong group at the wrong time, or you were simply not a favorite. No matter how you dig in, it just doesn’t make any sense.

    Well, it makes all the sense to the company. Two days later, they had a town hall meeting. According to people present, the CEO talked for 40 minutes about cost cutting but only 2 minutes about the layoff. Every single one of you (50 people) who were just laid off all soon became a blurred number in their files.

    Remember the anniversary dinner you missed, Thanksgiving eve you spent in office, countless weekends on your laptop, all for closing deals to make the numbers. Now they did hit the target and had a record year, your bonus is in danger of being stolen away to pay the “big shots”. You will be lucky if you get half of what you deserved. They (MDs and SVPs) will bring home a big bonus with YOUR sweat and tears.

    I know it’s easy to throw your hands and just walk away. At the end of the day, they are a giant corporation. You say “what can a little guy do?” This is why they get away with these shenanigans for so long.

    They have repeatedly told you that “we are a stable company”. “We can’t pay you hedge fund money but we will ride out the cycles.” Really? Now the real test is here, they are the first ones to pull the trigger. As someone says: no upside only downside. They think they will be ever trusted again?

    I’m a little guy too and still employed but very scared. It’s just a matter of time all these will happen to me. In this company, only the blue blood (MDs) is truly protected. Very few (almost none) MDs were let go even though they are the most expensive. I realize one day I’ll become just a number in their file too. For now, my laid-off friends, enjoy your life and never do it again.

  • I believe its a great idea for all of us to meet and discuss. When and where? I’ll be there.

  • To: The Little Guy – well written and to the point. So true!!!

    This is a true example of Bill Cary he was the President and CEO of GE Money…now he has a new job and sitting in GE Capital HQ…what is he going to do for Capital….when he couldn’t take care of Money?? I think for the employees who will remain…it will be a disaster of gaining more work with no pay!!!!…or better yet GE will outsource the work to INDIA….

    Well, when I mentioned to my son (17 yrs) about a possible lay off a few weeks ago…he said what??? and you missed dinners with me…drop me off to school early so I can attend a conference call and missed my school activities…and now they will let you lay off!!! What the F*uck!!! This will not happen, however, he is very up set.

    I truly felt so bad and my heart dropped to the floor. I promised myself after hearing my son say these statement I will NEVER put a Company before my family :) It’s a shame that Corporate America is turning into Greedy America…however, with a few bumps on the road!!!!

    In 2009 we will see more fraud and “cook the books” deal from more companies…so if you have your money in the Stock market…I suggest you loose now and take it all and put it in a save place at home..meaning a fire proof safe!

    Well it’s almost 12:01am 1/12/09…this week will be our ax week. I’m well prepared and DO NOT want to be at GE any longer….I want out..and start a new chapter in my life…imagination at will :)

  • The layoff will come in waves at GE Capital. It’s a way to minimize impact, legally and organizationally. GE EFS was one of the first to ax last week (1/7/09 for about 50 people). GE Money, GE Real Estate, GECAS, etc all will follow suit in the coming weeks. The layoff benefits should be standard (the so-called policy) across the board for all GE Capital employees. The key is the 6-12 week band-based layoff payment which will require you to sign a “no sue” release agreement. So for each person, you have to decide individually whether it’s worth it to forfeit $20K to sue if you have an issue. It will be a different story if many people have the same issue and certify their case as a class action.

  • I’m with you GE:(
    I volunteered for the layoff. You know what I was told? GE doesnt take volunteers. So, I cant even imagine why they would keep me. Unless, the layoffs are not individual as in an office closing. I hope that is not the case. I will sign anything they want. Just give me my one years pay and if I need to make ends meet I will sell all these beautiful GE appliances I have purchased over the years.

    Get me out of here!

  • GE, I think you make an outstanding point. “I will never put a company before my family”. I guess there are lessons to be learned no matter what the outcome.

    Janie, I keep hoping the storm will miss us but I have already started tightening my proverbial belt… paying off debts, cancelling credit cards, cutting down on spending, updating my resume, networking like crazy, etc.

    I’m hoping for the best and preparing for the worst. I wish us all the best of luck.

  • The latest rumor here (RE) is that it will be tomorrow, Thurs, and Friday. They are going to do it in a 3 day span because they have to meet with each person individually. I am also hearing the same from my friends who work in 2 other divisions (CDF & FF). My, my…won’t the next 3 days be productive ones.

    You know maybe somebody ought to do a LEAN project on laying people off so they can get it over with FASTER! Who the heck wants to sit here and maintain that almighty INTEGRITY while they watching their co-workers get picked off one by one. This is absolute torture!

  • Anyone know when the GE Capital/Corporate treasury division goes thru this process?

  • Its kind of funny that this handfull of GE cap employees are using this PEHUB site as a makeshift blog about our impending “actions”. Still havent heard anything, other than peoples guesses, however there have been some strange, last-minute meetings being scheduled in the last couple days. My guess would coincide with GEgirl’s rumor that it is going to happen in the next 3 days. Others are more optimistic, but I think it is just wishfull thinking on their part.

    If I do get it this week, I will be sure to update on this forum – from the comfort of home!

  • Does anyone one know how much severence per band? Also any information out there about other GE businesses?

  • I understand that a round is happening tomorrow. Broad swaths (20-30%) across GE Capital in Norwalk and Stamford. I didn’t hear the 2-3 day thing. I don’t think they would notify people like that. They maybe notified en masse and followed up individually but everyone who is affected will be told tomorrow.

  • We weren’t notified that this was happening by anyone…it is just the current “rumor”. Supposively it was heard from a manager. I take each and every rumor with a grain of salt, but I can say that an e-mail went out to our front end people (risk, closing) telling them to continue to work through the restructure, and to try to make themselves as available as possible for the next couple of weeks. I think it’s safe to say that confirms something is happening soon. Which we all know anyways…we can sit and guess all day what date it will actually happen, but what good does it do. Nothing we can do about it unfortunately but wait.

    Good luck to all. :-(

  • Kanga – Benefits website will tell you about the severence package. The change that was made alloted a certain lump sum depending on your career band. You still also get a week of pay per year of service. 15 years or more, you get a week and a half pay per year. The lump sum is as follows:

    Employee Band EB SPB LPB PB Other Salaried
    Weeks of Base Salary 14 10 8 6 6

    Please correct me if I am wrong anyone…I am just relaying what i understood it to be.

  • Hey folks,
    Just got a meeting notice from my manager. No subject, and for 15 minutes down in the basement conference rooms. Unless they are giving me a promotion, at 9:45 tomorrow 27 years will be over.

    I wish everyone luck, dont worry about me, Im happy to go…

  • I am in the midwest and with GE Money. We have been hearing rumors such as those above but have heard today that there is a plan for a mass layoff the last week of the month. Given all of the bad press on earnings and the proposed downgrade on the stock it would seem that sooner rather than later is the watchword. Saw where Citi is announcing a hugh “restructure” later today.
    GEgirl is correct on the lump sum payment because I got the letter.

  • All…Layoff notice today in New York, Chicago and Norwalk. Tomorrow and Thursday…about 300 people are receiving lay off notices in the Norwalk area…Hold your head UP and be STRONG!

    What you need to do…DO NOT sign the release…you will be sorry for the rest of your life. Go and find yourself a good employment attorney….lots of juicy traps!

  • Can someone recommend a good employment attorney in the New York City/Stamford, CT area (Westchester/Fairfield County)?

    GE Employee is correct…lots of juicy traps and Hold your head UP and be STRONG!

    Received my today!

  • Laid off empl… you got your notice that you are being laid off? Or you got a release to sign?

    Hey OldGEGuy are you at my location? Who did you hear about a mass layoff from? The rumors at our office are swirling around at a dizzying pace. I had a manager ask ME what I’d heard about layoffs. Everyone’s hunched over their desks, waiting for the grim reaper to fly down Concourse.

    Damn Janie. I’ll be thinking of you tomorrow. Please let us know either way. Tell us your location.

    I find it really ironic and more than a little infuriating that I come to this site to get info my company won’t tell me. Lean Six Sigma. Hmph. (insert expletive of choice)

  • Essentially there are two things the Company wants you to sign if you are laid off:

    1. The severance letter (3-4 pages) which should have the standard 30-day notice pay + 1 week per yr of service + 6-12 weeks per career band + 12 month medical insurance (regular payroll deduction if service is less than 3 yrs, otherwise free). If you sign this letter, you get everything except the 6-12 weeks. And you don’t give up your rights to sue by signing it.

    2. In order to receive the 6-12 weeks though, you have to sign a seperate release letter by which you basically agree not to sue the Company for whatever reasons.

    Am I right about this or am I duped/trapped? Any lawyers who were let go and saw the package can provide some legal advice on this?

  • GE Mini Mouse: I received noticed that I’m laid off.

  • To Janie:

    You are right! Unless you are getting a promotion which they have already put on freeze, tomorrow could be your D-day (not that you care).

    Here is what happened and will happen: the night before the firing your manager receives an email from HR telling him/her that you have been CHOSEN. Your manager is given a standard paragraph to recite (due to the financial turmoil in the market… blah blah blah). The manager then schedules a 15-30 minute meeting with JUST you. When you show up at the meeting, the HR manager and your manager have already been waiting there.

    So in the morning, go to your manager to have a chat. Look squarely at his/her eyes, you will know the story. Can I say good luck?!

  • Damned sorry to hear it Laid off empl.

  • what groups are these in? I have heard that GE commercial finance is letting go of some origination people tomorrow. Any validity to this?

  • btw, my 1 year anniversary date is in April. Do I just get 1 week paid as part of severance?

  • To: hmm, they prorate severance so you should get 3-4 days + 30 days working notice + X weeks lump sum based on your career band.

    To: Laid off empl & Janie, what Capital businesses are you from?

  • It seems that managers are handling this in a couple different ways. I was told last week that I had a Friday meeting with my MD and an HR rep. Other groups have been told to be sure that they are in the office from Jan. 14-22. Either way, it’s coming..

    One question that has not been addresses yet – Is unused vacation also paid to an affected employee? I am salaried.

    hmm – you’ll probably receive a prorated portion of your year – so probably 3 or 4 days of pay

  • To: i’ll call it a meatball if i want, unused earned vacation is also paid to laid off employees. Employees hired before Jan 1, 2003 receive all their annual vacation upfront on Jan 1. Employees hired after that date accrue vacation throughout the year so, as of Jan 1, wouldn’t have accrued anything.

    To: hmm, I just read in the benefits handbook that the minimum severance payment is 1 week.

  • Thanks for the info! w/o giving away too much info, i’m on the lending side of the business. expecting originations team to be hit tomorrow or thurs. a buddy of mine in the risk group told me that their boss had a discussion with the team that its been pushed back another week, ie next week.

  • To: Layoff benefits expert

    How many day/weeks are you entitled re: vacation pay for 2009 if you get laid off? Thanks

  • To: Laid off empl, it depends on your years of service and, most importantly, if you were hired before or after Jan 1, 2003.

    If you were hired before Jan 1, 2003 and are entitled to 3 weeks of vacation, you receive those 3 weeks on Jan 1. Assuming you haven’t used any yet, if you were laid off tomorrow, you would get paid for 3 weeks of earned unused vacation time.

    If you were hired after Jan 1, 2003 and have 5 years of service, you accrue those 3 weeks of vacation as the year goes by. If you were laid off tomorrow, I believe they would calculate the vacation time owed to you after your 30 days of notice are up, which might be only 1-2 days. :(

  • To: Layoff benefit expert

    Thank you. Are you a GE employee now or are you taking a rest?

  • Chicago Antares has no actual word yet but org charts posted point to the idea that the end is very near. Thanks to all, ESP layoff bene expert. You’ve really helped us all to prepare our questions. I have to say though that the severance package isnt too bad. I know of many others in our field who were shown the door with a wave and a kick in the butt. Wondering why there is talk of lawsuits? Unless you’re due a bonus.. what’s your beef? They are shrinking the company out of necessity. We cant all stay. I think we should all try not to take it too personally. This is truly a function of the economy. Hang tight all.

  • To: Layoff benefits expert….First let me take a minute to tell you Thank YOU very much for all this information.

    Here in VT we needs to know if you do not sign the release agreement, what are you entitled to? We heard we are entitled to 30 days pay, severance payment, unemployment benefits, plus medical benefits. Are these rumors or is this correct information. What happens to the Transition Payment if you do not sign the release?

    Also, we would love to send you a few $$ to you for providing GE employees this information. You are our inspiration that keeps ex-GE employees in a better mood.

    Can you please advise us?

  • Today is Real Estate turn to be ax. Please wish RE luck…as we all need a helping hand. It will be a truly sad day today for employees with 25 yrs of service :(

  • To Six Sigmata,

    We all understand this is a layoff due to an economic slowdown. Like you said, the benefits offered are not the worst (especially the 12-mth medical insurance). But individually there can be different situations. Like you said, if you are due a 2008 bonus and they try to screw you, then you have an issue.

    Remember CT is an employment at will state, meaning the company can fire you at anytime for no reason. But they CANNOT do it based on age, nationality, gender, etc. So if you strongly feel that you are wrongfully laid off, then you have an issue. The company knows it’s very hard to prove under this kind of group layoff. That’s why some companies think they can do whatever and get away with it. Talk to your employment lawyer if you feel strongly about it.

    As always, if you are satisfied with what you got, then move on with your life and be happy. No one wants to be a whiner. But there ARE legal avenues if you feel you were wronged.

  • I guess there is no harm at this point in revealing where I work. I only have an hour and a half left.

    Xerox Capital Services, LLC a Joint Venture between GE Cap and Xerox Corporation. JV started in May 2002. Rochester, NY. 27 yrs combined service. BTW, the day that we were told about the JV? – The morning of Sept 11, 2001. Thats how I remember that day. Creepy, huh?

    Im not the only one that has a meeting scheduled this morning. Not sure if they are walking me out or giving me 30 days. Good luck to all. I hope my volunteering saved someone elses job for them.

  • Janie – Good luck to you in the future. Everything happens for a reason, right?

    RE Emp – I too am with RE in the Midwest, and yes today is the projected day so I hear also. Most of our risk and closing people that will get the ax have been here 15+ years also. In fact most of the people in this office ahve been with GE since before it was GE. They will get a good package, but they have kids, tuition, new homes etc. Most of the people who were let this summer are still looking for jobs, so it is not good at all. I assume it’s he same no matter where you live.

    I will let everyone know what happens here. Best of luck, all.

  • Not that it matters, but sorry for all the typos above…I am just so nervous!!! Deep breath.

  • Probably happening as I type this – but hear that massive cuts 20-30% happening today in NYC, Stamford, Norwalk offices of GE Capital.

  • Regarding the transition payment: One thing that is not very clear and is not pointed out by HR, for soon to be obvious reasons:

    If you accept the transition payment, not only do you give up the right to file suit, you also lose ALL BENEFITS, including the free healthcare for a year (employees with 3+yrs of continuous service.)

    Here is a direct quote from benefits handbook:
    If you elect the special lump-sum option from the Layoff Payment Plan, your continuous service ends and all GE benefits end, including GE-provided health coverage. However, you may continue health coverage after your termination date through COBRA, by paying the full COBRA cost. After you log into benefits.ge.com and go to the benefits handbook. You can find it at: https://benefits.ge.com/spd/modules/jobloss/versions/jlfn08/joblossbenefits/othergebenefitsincaseofjobloss/pages/index.html

    You also lose your right to use Long Term Disability. You can continue this insurance by paying for the contributions up to a year. Thus, as long as you are paying for the insurance, you can file for it.

    All benefits in case of job loss are gone if you take the transition payment, including tuition/retraining reimbursement. For a summary of what you give up, go to:
    Job Loss Benefits
    1.5.2 A quick look at benefits in case of layoff
    Can be found at this link after logging into benefits. ge. com and opening the handbook.

    https://benefits.ge.com/spd/modules/jobloss/versions/jlfn08/joblossbenefits/othergebenefitsincaseofjobloss/pages/aquicklookatbenefitsincaseoflayoff.html

    The question I have is, is 30 days notice legal??? Everything I can find on the net regarding the WARN act “Worker Adjustment and Retraining Notification” states they have to give you 60 days.

    for summary, go here: http://www.doleta.gov/programs/factsht/warn.htm

    The HR lady told me there was some recent legislation changes that made the notice 30 days, not 60, but I cannot find any evidence of that legislation.

    There are articles all over the internet that say companies are skirting this law, because the know it is up to the employee to make the claim and try to get the company to pay up. But who’s got time to sue GE when you get a crappy package and need to find a job quickly???

  • It is happening in NYC right now I hear. Does anyone have any information on what groups and number of people?

  • Janie – Please let us know how things turn out. We are thinking of you.

  • To GE are criminals too…

    The lump sum you are referring to is the payout for years of service, i.e. one week’s pay for every year worked under 15 years. If you choose the normal payout over the lump sum, your benefits will not be affected. Signing the release form to receive the extra 6-12 weeks lump sum is different and will not change your benefits if you sign it or not.

    I am very sad to hear of notices coming to our office soon, but whoever is left will not have a very fun time this year picking up the pieces.

  • To: Got the Axe too

    Regarding the Transition Payment, as far as I understand it, you do NOT lose your health care benefit if you accept it. You do lose your rights to sue since you have to sign a release to get it.

    Only if you select the lump sum payment option of the Layoff Payment (based on yrs of service), then they will stop everything including health care. What’s the legal reason or purpose? I wish someone could tell me.

  • The transition payment is the extra payment on top of years of service determined by band. It’s the payment described by the mail that was sent out a couple days before Christmas.

    I confirmed with the HR lady in my notice meeting, if you take the transition payment, you lose all benefits. Taking the payment effectively terminates your relationship with GE, the same as if you take the lump sum for your basic years of service payout.

  • To: Got the Axe too

    Hmm… Not that I don’t believe what your HR lady told you, I’m somewhat confused. Why does someone want to choose 6-12 weeks’ pay and forfeit all the benefits for a year and also the rights to sue? I didn’t find anything in the letter specifically saying that, i.e. you give up your benefits if you take the transition payment. Maybe it’s one of the traps. Who knows? Any experts’ advice?

  • WELL…It happened…It started today and will go on for the next 5 days according to our manager. They let all of our closers and risk people go in one meeting. Everyone else that will be affected will be notified in the next 5 days.

  • Maybe she misunderstood. The agreement along with the benefits site add up to confusion, as it’s simply not clear.

    I’ve asked for clarification one way or the other with HR, specifically asking if I take the transition payment, do I lose benefits.

    Frankly, I think the agreement you have to sign to get the transition payment amounts to extorsion.

  • I’m typing this from home :)
    I didnt see any traps, in fact the way the transition payment was explained to me was that it will be paid in a lump sum AFTER your regular severance runs out. It all looks good, I dont need a lawyer, reads just like the employee benefits handbook said it would.

    I got the rest of today off, but am expected to return to work for 30 more days to turnover my work to whomever is left. My last official day is Feb 13th (yes Friday!) at which point my severence will begin.

    Not a bad deal at all. There is more, let your benefits manual be your guide.

  • Quick update and some questions. Confirmed layoffs happening today in the former GE Capital Solutions business. In CT and Chicago area.

    Has anyone addressed the issue of unemployment insurance? One of the scariest parts of the update letter that they sent out before x-mas was that once you sign the transition agreement, its equivalent to a “voluntary resignation”. Depending on the state, voluntarily quitting a job prohibits you from applying for and getting unemployment insurance (which could be thousands of bucks over the next 6 months!)

    Has anyone else heard of that or asked what the consequences for that might be?

  • Also, can anyone who has seen this termination letter post it somewhere? Or maybe just answer whether it has anything in writing about the educational layoff benefits or the healthcare benefits? Does everything get cancelled when you sign that letter?

    If you have a scanner, post the transition letter to http://www.scribd.com/

    its the youtube of documents, and its anonymous

  • Am with Money and the word is that the big day is tomorrow (Stamford specifically but am sure other areas as well). Anyone heard anything? What a way to kill productivity…I’m getting called and text messaged constantly!

  • What about unused vacation time? Do they compensate you for those unused hours?

  • I was just let go in CT. I was told I had a 30 day working notice. I was further told I was expected to work for the benefit of a “transition”. If I didn’t cooperate during the next 30 days I could be fired and not receive the severance package. I’d be interested in hearing others’ experience with the 30 day notice. I personally know people in other GE divisions who received the “30 day working notice” but were told to return their ID’s , laptop, etc. after the first week. They were told this at there notice meeting.

  • Janie – Glad to hear from you. More glad to hear you are okay with this all. Our people got the same…they are expected to return to work for the 30 day transition. Their official day is Feb 24th. I think they only have to work one day a week until then. She said it has something to do with new laws.

    GEguy – Great point! I hope someone can answer that and soon!

  • Recently Deceased: Did you get offered the “transition agreement”? Any mention of unemployment benefits or the 1yrs continuation of healthcare benefits?

  • If by the “transition agreement” you mean a number of weeks pay depending on band, yes. If I take my payments over time I will receive medical benefits for 12 months. If I choose a lump sum my medical benefits will cease. I’m not sure if the medical benefits extension relates to the “band” payment. I’ll need to read through the papers they put in my hand.

  • TO: Recentaly Deceased

    Sorry to hear about that. The 30 day notice is standard across the board. The only difference is some Capital divisions are deal sensitive and don’t want people to hang around for too long. In their case, they give laid-off empl one week to transition and that’s it. But everyone gets the 30 day pay regardless.

    On the education benefits, I think you get a few thousand dollar reimbursement for approved classes within certain time period. On health care, like someone mentioned before, you get 12 month with same payroll cost deduction if you worked less than 3 years. Otherwise the health care is free.

    Don’t know the answer of the unemployment insurance. Someone please answer that.

    The good thing (or bad thing) is that if you find and start a full-time job too quickly, you have to give back some of the severance money. So fellas, take a good break and enjoy your down time while you can!

  • TO: GEMagination

    My point regarding the 30 days “working” notice is that some employees aren’t required to be in the office and actually work but they still get paid for the 30 days. They are completely disconnected from the office after one week. Why should GE be allowed force others to “work” 30 days to transfer knowledge/process to others that earn less or are younger? I they don’t need you then why are they so desperate to keep you there to help them? Is this legal to treat employees differently in a layoff?

  • Any anecdotal #s on how many people let go in GE Capital today? I was let go today… its been really hush hush though

  • All quiet today in OH. Many rumors floating but no action as of yet. Would be curious as I see many were affected but it seems to be mostly real estate related what other businesses were impacted today.

  • We lost 50% of our employees (450) before Xmas. Is this just impacting the U.S?

  • It would seem so. Rumors flying that tomorrow is the “big” day. Stay tuned

  • heard capital markets in ny was hit today.

  • OldGEGuy, are you at the KBC? Things have been quite tense there this week.

  • I just spoke at length with Dan Sandford of Sandford, Whittels & Heisler (dsanford@nydclaw.com). It seems they have had recent success in labor litigation against GE. It can’t hurt to give them a call if you feel you’ve been treated unfairly in this latest purge.

  • Rumors flying that tomorrow is the big day!

  • Ok, I got a confirmation via email from 2 different GE HR people that:

    THE TRANSITION PAYMENT DOES NOT IMPACT YOUR BENEFITS.

    (I didn’t trust getting the answer from just one!) So you can take the layoff payment as bi-weekly, take the transition payment at the end, which is only available in a lump sum, and you get to keep the rest of your benefits for being laid off. The only way you lose your benefits is if you take the Layoff Payment (based on yrs of service) in a lump sum.

    I don’t know how the transition payment impacts unemployment. But it would make sense that if you keep your other layoff benefits, then you still get to collect unemployment. I have not confirmed this, and I have heard it stated both ways.

    Either way, I’m pretty sure I’m not signing, as I have a couple of viable claims against GE that I may pursue. The only exception is if I can negotiate my way to a bigger transition payment. For some reason, my local HR rep wants to meet with me next week. (Not the same person that delivered the news.) No clue what he wants to talk about, but that’s when I plan to grab them by the cajones. It may be a longshot, but I have nothing to lose. I’ll confirm if I’m successful.

  • As far as if it’s just the US, the answer is, No. As far as the former GE Money is concerned, it is global.

  • GE Capital Americas CEO Dan Henson sent out an email this afternoon confirming that “actions” started today. The layoffs in Danbury seemed pretty scattershot – a few people from different functions here and there. He said more layoffs are coming over the next few weeks. And just when we think they’re done, they’ll hit us again.

  • Janie, I can almost “hear” the relief in your post. I’m glad you’re ok with it and I wish you all the greatest success in your future endeavors.

    I’d say it’s quiet here in South Dakota but that’s not entirely true. Tongues are wagging but as usual, the management remains silent. Seems like the only rumors I hear are repeats of what’s being said on this make-shift blog. I did overhear a manager tell an employee (regarding same-said rumors) that he doesn’t trust anything that comes from the internet. Well, I’d just like to say that if you all (or if you one) are putting on this extraordinary performance just for my little ole benefit, then bravo!

    Whatever.

    I wish I could contribute something more helpful. Since I can’t, I’m going to stop wasting space here. In the meantime, hang in there everyone.

  • Apparently most of you folks forgot to sign your Spirit & The Letter? Divulging non-public information, whether it be memos or emails is grounds for dismal, and I have seen it happen. No severance packages in that scenario!

  • Spoken like a true HR person….

  • I am in Danbury with Capital. I have been with GE 5 yrs, signed on for “stability”. I stick to my “knitting” and profess to not know a ton of people at GE. That said, I know of 14 people let go today from our business. Given my limited circles, that is a lot. All solid performers, many yrs of experience, good talent… It is a huge loss to the business. We are left with a skeleton crew, interest rates that are 250bps higher than our competition (thanks Tiple A) and a risk strikezone tighter than a crabs ass (water tight). I believe that the goal is to suffocate our business. Those that could leave, have left. Those who are left want to leave but cannot find work. Morale is very low. Our customers – the reason why we are in business – are taking their financing needs elsewhere. It is sad to see a once solid co. brought to this… and at the end of the day, GE Capital has been very profitable for GE. It is hard to fathom. I am sure my # will be up soon. Thanks to everyone for the info.

  • Well tomorrow is our day….check out this article/link:

    LEARNING FROM GE AS SPIN SEASON APPROACHES

    http://dealbook.blogs.nytimes.com/2009/01/07/learning-from-ge-as-spin-season-approaches/#comment-130729

  • To: Roadkill…..

    It’s a shame that this is happening after Immelt brainwashed his employees that we are all set for 2008!!!! Any Company that the stock sits at the same price for a long time…is not good. Perhaps if we take all bonuses away from all employees including Immelt and senior management…we would not be receiving Lay Off Notice! Shame on you Immelt…GE was voted for the best company to work for????? Immelt who are you paying off to stay on Top?

    I can guarantee it is more than 14 people…tomorrow and until the end of month…plenty more lay off notice given out!

    You also need to understand this massive lay offs are in 1stQtr 09!….more to come for each quarter…if you’re not impacted now, sooner or later you will!

  • Most definitely more than 14. Like I said, I personally know 14 that were axed and I do not know a ton of people at GE. I’ll bet there were hundreds let go today at ComFin. And Henson’s note this afternonn said more to come in the coming weeks. That is on top of scores that were let go in 2008. At least traffic on 84 will be lighter (gallows humor)…

  • For those of you who say “not to take it personal” , “its the economy”… read Little Guy’s post… he hit the nail on the head. I spent several years at GE believing the hype, accepting less pay for the belief that in tough times GE would not let me down. In fact I remember management sitting us down when the market was hot and people where jumping ship for better paying jobs, telling us that we’d regret leaving when the market slowed down. Well, guess it didn’t matter, at least those who left then were paid for their risk. Never again will I be as loyal to a company as was to GE.

  • “Been There” – I agree with you 100%. I listened to the “talk” and believed it (shame on me)… and yes, I got let go yesterday.

    Hang in there everyone – the economy will improve. Pls remember to tale advantage of the situation and spend quality time with your family at times like this. (Especially since you probably sacrificed a lot of time from your family if you worked for GE)

  • To: “Been There”… well put. I drank that kool-aid too (shame on me). Never again. My +10 years GE career ended yesterday with a “chat” with my manager and HR.
    For those who have been laid off… take advantage of the time and spend extra time with your families. Most likely, like me, you also sacrificed parts of your family time while putting in those extra hours for GE.

  • To: Saddened….what location and business are you from?

    Yes, it’s VERY sad…If GE Management had a little extra compassion and caring in their heads…and instead of making poor choices and taking lavish business trips, and spending useless money for them and their family..GE would be in a better shape today…and you can’t forget the bonus…..instead of having HR working on Bonuses…they would give up bonus pay and keep employees. I had a glance on bonus $$$ amount and they could keep me for at least 3 years with full pay and medical benefits! This is called GREED! This is why GE does NOT want to pay over time to some employees…the little guys are taking from the bonus $$$. However, management will not know how to put a pitch together….things will fall and the SEC will be up the GE A$$ :) !

    A few of us…are planning if we do get axed…we’re going to open up a can of warm with the SEC and Congress….lots of issue placed underneath the rug!!! Meaning enough is enough of this Sh*t!!

  • Yesterday was my day (RE), and many others too (150)!!! It’s a truly sad ending after 29 yrs of services – Loyal, integrity and most of all…many LOST HOURS with FAMILY AND FRIENDS because of a GE meeting preparations with no perks!

    I was thinking if it’s a good idea if we spill the beans and let “Forbes” know the real truth about GE! How can GE be the “MOST ADMIRE COMPANY TO WORK FOR”? I’m having a really hard time understanding! Can someone shed some light????

    Can we contact Congress and have someone contact GE to stop bonuses and keep employees…it’s kinda later now….however, it would be a very good idea to get Congress involved and to show what GE is all about.

    Thanks for listening and hope all are hanging-in-there!

  • To: Hanging by the string

    What goes around comes around! Look at the state of the company. They either have to cut dividends or get their AAA downgraded this year. Either way it doesn’t spell good news. For whoever is fortunate (or unfortunate for that matter) to stay with the company, fasten your seat belts. By no means is this over.

  • It’s easy to get angry, even defensive when a company has to take actions to protect its’ longevity in the global market and you are personally affected.

    I too am at risk (quite frankly, you are always at risk, nothing is risk free in employment), but I have to take a broader look at my relationship with my company and when I do, I am happy. I have benefits and training that others I know only have dreamed of in their companies. I too have put years of service into my company but I also understand the bigger picture. Read the news, the financial services industry is trashed. Every competitive corporation is cutting THOUSANDS of jobs and those that are not competitive, well they are closing doors altogether.

    So while I’m empathetic with people who have lost their positions, I hope you can look outside of your situation at the broader picture and understand that these are things that have to happen. It’s not like all these financial institutions could just keep all of their people and drive themselves into bankrucptcy and end up having to let everyone go. I think GE’s position was clear, obviously not at the start of ’08 because no one knew how bad this could get, but they have been very clear for many months that the financial parts of the business need to shrink. I don’t think that required much reading between the lines to figure out that people had to go and the companies financial business would be smaller.

    Godspeed to those affected and all the best to those who make the cuts, I truley don’t believe it’s about how ‘bad’ of an employee you are or anytype of personal attack, it’s as simple as making a cut. I wish you all luck!

  • As a veteran/survivor of 5 rounds of layoffs 7 years ago after the internet/tech bust – watch out for the saintly executives who give up their bonuses for the good of the company, meanwhile receive millions of stock options after the stock has been hammered — due to their mismanagement.

    Observation – Ironic that this chain of commentary proliferates at PE Hub…given PE is notorious for, you know, laying people off…

  • as a loyal GE shareholder I just wish the company would get rid of GE capital and get on with making the best industrial goods in the world. Lots of aquisition opportuntiies in those markets now. If there is a capital arm to support customers buying GE goods that is fine.

  • emotions are high and people are upset an angry. but don’t do anything that endangers ge further. if you’ve been working here, then you are likely a stockholder too. don’t sabotage – further impact to the stock price will impact not only the company, but yours and other employees retirement and 401k and could implicate you legally/criminally

  • To: SignOfTheTimes

    We all understand the “big picture”. Anyone with half a brain would figure out “GE Capital shrinking” months ago. However, this layoff does expose some issues:

    1. Don’t advertise to future potential hires that you are a stable company and can weather the economic cycles. You just proved you are not and cannot. Otherwise it’s just intentionally misleading.

    2. Don’t ask for loyalty from rank and file employees while you only take care of your higher-ups.

    3. Don’t tell your staff that their family comes second to the job. I know you didn’t specifically say that. But you try to remind everyone exactly of that in many different ways every day.

    4. Don’t use this lay-off as an opportunity to get rid of good people for some managers’ personal gains and benefits.

    For people who made the cuts, congratulations and all the best. For people who didn’t make the cuts, hope you learned a lesson and it’s not too late to start new again.

  • To: take it easy

    Don’t you also know it’s illegal and criminal to intimidate and frighten people away from expressing opinions in a public forum? The stock price is a reflection of investors’ valuation and confidence in the future of a company. The stock price will tank if people lose confidence. It’s just that simple.

  • I’ve been in the Financial Services industry for over a decade, and have witnessed 5 rounds of layoffs in just the last three years with a few different companies. Is it difficult to witness? Yes. Is it also a part of the environment I work in? Yes. The way I look at it is that I’ve had several opportunities to be pro-active and to take another job whether it is in the same industry or another. Ultimately it was my decision to continue. It is a dog-eat-dog business in a dog-eat-dog economic climate. I’m fortunate to still have a job. I take nothing for granted. I always keep my options open. And lastly, I expend energy for positive action. While I understand the reasoning behind the negativity of so many posts, I just wish people would stop pointing fingers and would start to move in the right direction. I will always live by these words: If it is to be, it is up to me. Granted, you can’t always control an outcome, but you can control how you handle yourself during the outcome, and what you can do to overcome. God bless.

  • Listen this needs to be handled the only way GE understands, through the press and with a class action suit. We need to not take this laying down, and there are several firms out there looking at sponsoring an action…

  • Are the layoffs over… or is there more to come in GE Capital? Heard from a friend who works there that it is still ongoing on the international side…

  • I spoke to a professional person today, and I need to say GE is a very good company, however, in a storm at the moment. Let’s hope for the best in 2009 and going forward!

    GE you’re mine shining star!

    XOXOXO

  • To Curious: There’s still more to come. Everybody is waiting anxiously at the CDF division watching HR run from office to office. Tomorrow? Next week?

  • I have to agree with you “Hanging by THE STRING”

    GE is a very good company, one of the best in the world. The company is not extracting vengeance or acting with malice through these reductions, its reacting to an unprecedented down swing in the economy to try and sustain itself. Those above that seem to think otherwise need only to read headlines or watch the news as EVERY OTHER INDUSTRY is experiencing the same thing.
    As for forming class action suits??? Over what?? The severance package is adequate, more adequate than required. This down sizing is very sad, and it certainly has a negative impact on peoples lives, but why try and make it into something its not?? I’d like to think that GE employees (or former employees) would exhibit a higher level of professionalism rather than making some of the inflammatory comments made above.

  • this is just a start. After the new leadership forms their teams, there will be job postings and all the unfortunate folks who do not get some slot will be out!
    There are other measures to cut cost, this is sending a bad and sad message to the employees … loyalty — no way!!

  • GE will never be the same again!! Thanks to the greed of the top management, so many lives will be in jeopardy.
    Management should take responsibility and take pay cuts .. suggestion:
    E Band and up: 30% paycut and no bonus for ’09
    SPB: 20% pay cut
    LPB and below: 15% pay cut

    This would save GE more that what they would gain by letting 1000s of good/loyal folks go!

  • GE Guy are you kidding me?

    How many people do you know that have EVER retired from GE Capital? Look at institutions like Chase, Bank of America, or Citi and you see literally tons of people working their whole careers there and happily moving into retirement. I am not sure what segment you are in but one of GE’s biggest issues competitively is they have a new sales rep infront of customers every year where the insitiutions named above have the same relationship managers for years and years.

  • All:

    In today’s news, the Feds/Congress extended unemployment for 13 more weeks! This is very good news….and I believe…in a few months more perks will be shed our way.

  • To: Who are you kidding….correct in the 15 1/2 yrs of service…I have seen none!

    To: GECAS employees….I hope you don’t have any loss with the USAir plane going down yesterday in NYC. Thank God they’re all save.

    Gee…we’re bitching about been ax…image the people on this plane!

  • To: Who are you kidding

    um…phone’s for you. It’s 1920 and they want their career path back.

    Wake up, it’s 2009, you don’t pick a company and stay with them ’til the grave anymore.

  • To: GE GUY

    You are lucky and must be working in a different group. The division I was at is considered one of the elite within GE Capital. A lot of MBAs from Harvard, Yale, Columbia, etc. I’m sure these are good people. But like when people go to Washington, they tend to become corrupt. When these elite MBAs come to GE, some of them become backstabbers, trash talkers, and extremely self-centered people. What changed them? It must be the culture. If you like it, you become a GE GUY and thrive in it. If you don’t, then you will be the first ones to let go in a layoff like this. I have worked for three other Fortune 500 companies. GE is by far the worst place I have ever been.

  • Hey GE Guy
    Stop drinking the kool aid. After a week or so you might even get the meatball tatoo removed from your forehead.

    GE Capital will make $8B this year. $8B!!. They are not Citibank, Wells, Wachovia, Bear, Lehman, etc. who are all posting multi $B losses, they are making $8B. They don’t have to lay people off. I don’t even work there so I don’t really care, its just the fact, they don’t have to lay people off.

    More food for thought, I used to work there years ago, and Are You Kidding” is right, no one retires from GE. Want to know why, because GE Hires tons of young people every year, people that are ambitious, eager to make their mark, work long hard hours. GE Capital pays them just enough money to enable this to happen. Ge will promote a few, and these are the priveledged ones that get to work at GE into their 40′s and maybe 50′s if they are lucky. The rest get ground up and spit out around the age of 40 and replaced with younger people who will work harder and for less. Its a great working environment when your in your 20′s and 30′s, I loved it. But Take a look around. how many people do you see in your 40′s or 50′s, got forbid 60′s, working there. Lets segment the age groups which people work into 4 groups, 20-30, 30-40, 40-50 and 50-60. Population growth is steady, I mean I’m not aware of any serious implosion or explosion in growth of population in past 30 years so you would expect to find 25% of work force in each of these 4 age groups. Seriously, does anyone see 50% of the office folks age 40 and older. More like 5-10% at best. GE has a great strategy and its the secret to their success, hire them young, work them ragged, pay them just well enough and recycle them when the output/cost ratio drops to an unacceptable level.

  • hmmm, good thing many of you are not running companies…

    “They don’t have to lay people off” ARE YOU SERIOUS? yes, capital makes billions, that’s the point. You honeslty think that GE should just keep people around UNTIL they become a BOA, Citi, etc and are going bankrupt and posting loses????

    Use your brain. A business is about cash at the end of the day and you have to have foresight to keep shareholders happy and buying stock. If you don’t like the game, then don’t play, go private held or some other route.

  • Yeah, but nothing beats the softball games and morning-after commentary during the summer. And Friday morning bagels in 201!

  • GE Capital to cut up to 11,000 jobs- reports CNBC

    http://www.reuters.com/article/marketsNews/idINN1629531720090116?rpc=44

  • dealbreaker.com also breaks the news, from a tipster

    http://dealbreaker.com/2009/01/layoffs-watch-09-ge-capital.php

  • To WhereAreTheBrains

    BOA, Citi et al did not lose billions by just keeping people around. Please tell me you are not stupid enough to actually believe that. They lost Billions by making very bad credit/investment decisions, something GE Capital hasn’t done. GE, thanks in large part to GE Capital, is able to post incredible dividends each year because of their large earnings, this of course includes the cost of all the people that they are letting go.

    Personally, I think you are the one who needs to start using your brain, once you find it that is. GE hasn’t “had the foresight to keep shareholders happy” in 7-8 years, and laying off people is not going to make shareholders any happier. What will make the shareholders and analysts happy in the long run is greater cash flow from operations and less earnings from short term tricks like asset sales, tax plays and RIF’s.

    Go back to school

  • WhereAreTheBrains

    Do you really think that GE Capital will become a BOA, Citi, et al just continuing to employ the few thousand people that they are laying off now. Please tell me you are not that stupid. These banks did not lose billions because they had too many people, they lost billions because they made incredibly bad investment/credit decisions, something that GE Capital didn’t do and probably won’t do going forward. GE pays an incredible dividend each year because they are so profitable, and they have done so year after year with all these recently layed off people employed.

    Really, I think that you are the one who needs to use your brain. GE hasn’t had the “foresight to keep shareholders happy” in 7 – 8years, and certainly, firing these employees isn’t going to bring the stockprice back up to where it was 8 years ago. What GE Capital and GE needs to do is concentrate on figuring out a way to greatly increase cash flow from operations and ROI and stop with the short term tricks like asset sales, tax plays and RIF’s.

    Go back to school junior

  • WhereAreTheBrains

    Do you really think that GE Capital will become a BOA, Citi, et al just continuing to employ the few thousand people that they are laying off now. Please tell me you are not that stupid. These banks did not lose billions because they had too many people, they lost billions because they made incredibly bad investment/credit decisions, something that GE Capital didn’t do and probably won’t do going forward. GE pays an incredible dividend each year because they are so profitable, and they have done so year after year with all these recently layed off people employed.

    Really, I think that you are the one who needs to use your brain. GE hasn’t had the “foresight to keep shareholders happy” in 7 – 8years, and certainly, firing these employees isn’t going to bring the stockprice back up to where it was 8 years ago. What GE Capital and GE needs to do is concentrate on figuring out a way to greatly increase cash flow from operations and ROI and stop with the short term tricks like asset sales, tax plays and RIF’s.

    Go back to school junior

  • To: WhereAreTheBrains

    Here is something for THE brain: “Why did GE finally give up providing quarterly guidance?”

    Two words: “GE Capital”.

  • I know a number have been cut it IT. Some that I know, and others that I don’t.

    Since some in IT have a lot of power to do damage, they usually get perp-walked out the door – no notice (so they must get paid for the 30-day notice period).

    Here’s an idea. Each morning, bring in a styro-cup of frozen shrimp and put it in your desk drawer. Each night that you are still there, take it home and have a shrimp cocktail. And if you happen to not be walked out in the middle of the day,after a few days, who knows, you got rushed out before you could take your dinner with you!

  • To: GetRevenge….

    You should be very careful NOT to do any damage! The IT Private Eye is watching 24/7….you will loose lots of perks!

    You should also need to understand…the layoff package is a good one! What are you complaining about?…GE provided 12 months of medical benefits, free school, 30 days pay + severance pay + transition pay, 26 weeks of unemployment pay + 13 extra extended weeks of unemployment. +++ spending quality time with your family :-) ! I wish GE would offer me this package every other year! What are other companies offering…I don’t think all of the above?? Please correct me if I’m wrong.

    We should all pray for the GE stock to go up..so we can take an early retirement package!

  • Wow why is GE providing all this severance stuff, they should just fire people like other companies do. Prepwalk and hastalavista baby. No wonder GE stock is in the toilet.

  • To: SCCC/goldmember/?????????????

    Oh where to start. First of all, thanks for attempting to insult my intelligence, then post three times in a row on here with two different handles all on the same subject and exact same rhetoric. At the end of the day, at least I understand basic computing I guess.

    Yes, those institutions lost billions based on bad decisions, which is precisely why GE is downsizing Capital so that they too don’t make a bad decision by driving forward with such a sizable financial wing in a crapped market.

    At the end of the day, the thing that makes GE attractive to outside investors (ME INCLUDED. To your delight, I happen to be very educated and I don’t work for your company but do invest in it) is the conglomerate business model that enables this firm to expand in areas that are worthy, contract or exit those that are not, and constantly re-examine that intricate mix.

    At the end of day, GE is in a class to itself. It provides training and benefits superior to competitors and has an extensive history of creating amazing business leaders, many of who leave GE and end up running major public corps so it’s too bad to have a pass through the corporation for learnings sake. Life will go on, GE will go on and continue to one the best, most admired corporations out there. Let’s hope this stock climbs!

  • I bought 5000 shares today at 13.08 GE is a new holding. If they need to chop heads, so be it. It means dividends continue and shareholder value increases. I hope all GE employees are not a bunch of spoiled whiners such as the posters here who got out with a golden parachute.

    Who the heck gets laid off and are provided 1 year of healthcare for gods sake. Then turn around and want to do lawsuits for getting laid off. No wonder the US is in deep trouble.

  • Two words come to mind when I read all this. Office Space. “Okay, but… I could set the building on fire….”

  • To: Em empl

    Some people must have lived in a cave when it comes to common sense. The unemployment insurance is mandated by law. All laid-off employees will receive this benefit (the 26 weeks + 13 more weeks as you mentioned) regardless which company you work for, not just GE. In terms of severance, I have friends who worked for other banks mostly getting 6 mth severance. The 12 mth healthcare benefit is a good one, but it’s the least cost/benefit item if you do the math.

    If you invest your 401K in the company stock (as it sounds like) and rely on that for retirement, I caution that could cause a double whammy. Just look at what happened to the former Enron employees. You don’t have to believe me. Consult with your financial advisors.

    To: WhereAreTheBrains

    I can tell you are a very intelligent person from how you write. But as an investor, unless you have been shorting the stock, you must be really pissed off (down 60% in a year). You said you don’t work for the company, and then you just lost your credibility in terms of how real employees feel about their company. Some love it, some don’t. To dispel or even intimidate (like Em emlp did) others from expressing feelings is futile.

    To: Gordon Gekko

    Needless to say, the US is in deep trouble because of the greed and irresponsibility, not because of hard working employees. As for the golden parachute, I always thought it’s for the executives, such as our Neutron Jack. Am I wrong?

  • To: GORDON GEKKO….

    AMERICA is lawsuit HAPPY!!! ONLY in AMERICA this happens!!! This is the name of the game….

    The American Legal System su*cks big time….an example on the Bernardo Madoff case…scams $50 BILLION…and is out on bail on $10 MILLION…living life to the fullest in his $7M mansion!!!…do you call this JUSTICE! It seems the judge didn’t graduate from Howard Law School…he/she probably attended one semester and dropped out!

    Check out the SOME people with College Degrees…”meaning” the “WHITE COLLAR WORKS”….I don’t know how they reached to the top i.e., CEO, COO and etc.,…they can’t keep a correct balance sheet….can you? Americans are born with a “Silver Spoon”…the only problem is you don’t know the true meaning of a “silver spoon”…this is why America is falling apart! I wish I had the power to send these kinds of people to AFRICA without a BB, laptop, cell phone….and the only food option would be “grow your own” food! for at 2 years.

    Wait and see how much more scams 2009 will bring.

  • America is in trouble because the population here decided to live a leveraged life style and decided that it was a good idea to buy everything their rugrats cry for and put it on the card, send them to all kinds of expensive camps and classes etc, buy the overpriced 5 bedroom McMansion in a tract home where every house has no yard, and they all look like big boxes just like the big box stores americans fell in love with buy his/her SUVs that guzzle gas like no end. The population here in America would spend time at the malls and bigbox stores buying overpriced chinese goods (ie 80 dollar sneakers made in china for 2 bucks etc..) doing “Shopertainment”

    So all those GE jobs, they were fake. Illusionary jobs that only existed as americans were willing to spend illusionary dollars on foreign goods etc.. to live an illusionary faux rich lifestyle.

    GE is shrinking its illusionary positions and what to the leveraged up to the hilt employees do, cry and expect above and beyond what GE is provided and now want a lawyer so they can sue and squeeze out more money.

    Sorry but those days our over. Get over it, you have your health maybe you can downsize your oversized lifestyles.

  • Does anyone know what is happening with ge antares office in san francisco. Are there going to be layoffs there too?

  • Why do we Americans can purchase a 5 bedroom Mansion with no money down…because of the Greedy White Collar Workers…Why would any bank/financial institute give out a mortgage to a person that is living from one pay check to another??? Don’t know why…these are the results GREED!!! Why charge an item, when you can’t pay the visa bill once it arrives? It’s all greed….

  • Has anyone at GE Capital had any success negotiating their package?

  • To: Laid Off

    You will need to provide more info. Such as your direct business and location. Are you meaning the severance, notice date and transition payment? Each state has different laws. However, if you signed the release letter…you have a very slim chance for receiving what you’re aiming for. Good Luck!

    To All – Just an eye opener and a warning:

    I also want to bring to every one attention that if you are left behind after this lay off. Many GE Commercial Finance old positions will be re-posted as NEW positions because of GE Capital (down-sizing). So you may need to re-post for your own position (this is a very fast and cheap way for GE). As you are already aware, many employees with be interviewing for the same position…and guess what – 1 person will receive the opportunity….the others will be told we are very sorry but you don’t have the job! It’s time to pack-up and go without any severance package! So, I’m very grateful that I was on the Lay Off Notice list! GE thank you very much. GE you bring good things in my life :) !

    Immelt will state the 1ST QTR 2009 results on Friday, Jan. 23 – so let’s all hope for flat results, because if the results are below est…we all will not be able to retire as scheduled.

    Let’s see what Friday brings………

  • I am in a CT office of GE. Lay off planning has not begun, but is in the works. A few of the Finance Team members received an email from HR with job posting info. Although, it wasn’t a lay off notice, it looks like a big hint for those people to start looking.

    Lots of meetings going on, and probably the lay offs wil begin soon. We have the standard lay off package also. In prior years the package was better. But, still, not a bad deal at current.

    Is there anyone who has experience with being laid off at GE? If you take the weekly payment, are you supposed to apply for unemployment at the same point in time, or do you wait till the severence runs out then apply.

    I would opt to do weekly payments verses lump-sum if it happens. And, if you find a job outside, is it true you return the severence pay?

    Still very worried.

  • To: Worriedat GE

    Ask for a new copy of the GE Benefits Handbook, there is a failry good section on plant closings and layoff that includes all the information you need regarding what you receive, steps to take regarding various benefits along with phone numbers and timelines for action. You can visit the online information at the GE Benefits website too but I found the booklet an easier and more complete read. When I inquired about Unemployement in CT, I was told that I could not collect until my severence had ended. Not all states have the same rules, or pay out the same amount per week, so it is best to check with the state where you live.

    From what I understand, the severence is your’s to keep. The only time you would be asked to return the money is if you choose the lump sum payment and then get hired back into GE before your severence time would have ended. If you choose bi-weekly pay, even if you get a job back at GE, you still keep all of what has already been paid out to you. If you do not return to GE, all the money is yours to keep no mater which option you choose.

  • Thanks Logan’s run, I will check. I did find out that in CT there is no law that says you can’t collect unemployment if you take the package. This is something most would not know.

    I would be interested to know if anyone else at GE had any success in negotiating a better package with GE?

  • to EX EMPL

    Immelt is not presenting Q1-09 results this Friday, it would be kind of impossible to do so since we’re only 3 weeks into Q1. He’s reporting out the YE-08 results, and as analysts have stated all last week they’re expected to trend on the low end of the guidance.

  • To: GE Guy…You’re correct. My apologies for providing wrong dates. Yes, very impossible.

  • This determines that this forum is NOT true information. All of you are wasting your time here.

    In order to receive accurate information regarding your lay off packaged…it’s best to contact a lawyer!

    Good Luck in this winter wonderland storm 2009.

  • In Obama’s inaugural speech, he said: “Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some…” I thought I said that first – see above :)

    Now I’ll predict one more thing. No matter what kind of result GE is going to report on Jan 23rd, Jack is not going to “get a gun out and shoot” Immelt this time. Mark my words.

  • I heard that some executives got cut today. The guess around our office is that their organizations will follow tomorrow and Friday.

    Still a LOT more to go!

  • All has been quiet in the lending side of the business thus far.

    DownDownDown – What groups were affected and what location? Historically, the firm has not cut people on Fridays…not sure why. From my experience and from those who have been around longer than I have, the cuts are usually on Tuesdays/Wednesdays/Thursdays.

  • Does anyone working in IL know if the IL WARN act would be triggered, requiring 60 days working notice vs. 30 days?

    From below link, it sounds like at least 250 employees would have to be impacted to trigger the WARN act.
    http://www.illinoisbiz.biz/dceo/Bureaus/Workforce_Development/WARN/

  • First off, I think anyone who posts here needs to be sensitive to the employees and former employees of GE. Gordon Gekko, you probably need to find a different venue to post. Many GE Capital employees have great financial and economic advice. This isn’t a stock rumor mill, but from everything I’ve seen, GE Capital’s 1Q performance is a lot better than the pessimists are expecting. Keep everything in perspective.

    The severance policy is decent and it is what it is. It’s time to stop complaining. Fortunately I’m still employed, but have seen many close friends laid off by GE and other companies. I’ve seen everything from, turn in your laptop and get out to 1 month + two weeks for every year.

  • I still have a job at GE Capital. I really planned for the worst last Wednesday, but nothing happened to my team. 1/2 my office was notified. Now I am even more worried. Has anyone heard about anything more coming?

    The conglomerate model should be more stable, but unfortunately it is very dynamic and GE is always making changes. Those changes mean changes in staffing as well. There are some great training and growth opportunities at GE just to keep things in perspective. To those who want to sue…I don’t know your specific cases, but do you want them to keep everyone? If that were the case then we’d be the next GM. I’d hate to see their msg board right now.

  • To: Asset Manager:

    Of course, GE Capital 1st QTR ’09 performance will be a lot better. Gee..why, not? Look at the massive lay off employees the first 2 weeks in Jan. 09! If GE 1st qtr 09 performance are not good….it’s time to pack up GE and they can hold hands with GM. Yes, let’s keep everything in perspective! Yes, the severance policy is very good. I was lucky enough to receive it, and am very happy!

    These are a few solutions to make GE a better place to work and survive:

    1. Freeze salaries….Obama did his 1st day…why not Immelt.

    2. Eliminate Bonus for 2008, 2009 & 2010 and revisit bonus in 2011.

    3. Immelt needs to stop dreaming of “double digits” results….GE will not reach this goal for 2009 and 2010 unless you lay off 11,000 employees to off set the balance sheets.

    4. Immelt needs to stop pressuring Senior Leaders of each business to accomplished “double digits” for each quarter…this is why GE Capital is in a complete mess now….these Senior Leaders went out and took many HIGH Risk short-terms loans. Very poor choices here.

    5. Give CAS employees more time to investigate and dig deep…many uncovered issues…resulting in money loss for GE.

    6. Fire Keith Sherin.

    7. If no change to GE by 1st qtr of 09….it’s time for Jeff Immelt to go. And not by selling poor businesses to off set the balance sheets…this is the reason why in 06 and 07 GE showed high performance results. If number 1 and 2 was accomplished before GE planned these lay offs….we all be working now.

    GE was a great company…many top talent employees…however, because of GREED…this company turned in a disaster.

  • To: Am I lucky?

    No one, except for the short sellers, wants to see GE to become GM. Every company is cutting costs, including people. But that’s not the point. When a company engages in HR practice and hiring/firing decisions as described in the SCCC’s post above, there is a problem. Is it illegal? We’ll have to leave that to legal experts. But it surely raises ethical and moral issues. If you ask: “Am I lucky?” You certainly are since you are still employed and haven’t been on the receiving end of that practice. Just try to hold that luck all the way through.

  • I am just beyond words on everything that is going on. When people keep saying how great GE is I wonder if they ever have worked for this place? I worked in CLG in Chicago and had a Chief Risk Officer harass me so badly that I had to move to BLG just to be able to come into work every day. Now I am back to either no job, or daily sexual comments from “senior leadership”. That is not how a business should be run.

  • in shock – JU?

    That’s terribly disappointing to hear….

  • To: in shock…

    Your comments are not in the Spirit and Letter Booklet rules. It’s time to call “The Ombuds Hotline” remember “NO RETALIATION”. It’s a private line with NO caller ID.

    Toll Free: 1-877-662-8371

  • We are all dealing with unprecedented economic times, including GE. The stock is at new lows and GE is acting diligently while trying to right size the business. They are moving swiftly, but also being diligent to achieve continuity of business. It is not always fair, but they are not taking a personal vengeance as was pointed out before. The shareholders are the ones who demand the returns, it’s unfortunate the stock can’t reflect employee retention. All of the current and former GE Capital employees really know how to find creative solutions for our customer’s financial needs.

    SCCC, you are correct correct when you say GECC isn’t going to become like the other banks overnight. Realistically the company can’t maintain the overhead after not doing any new business for 3-5 months prior and future volume is going to be down 40%

    In Shock: I’m sorry you are such an attractive person. You should definitely blame GE for that. On a serious note, that is unfair and you need to talk to your manger directly. or notify your HR manager or Ombuds. I wouldn’t believe the “no caller ID”. That’s just like the anonymous web chats. All the execs know who is talking on those.

    GE is a great place for a career if you find the right people. Many people in my office were let go, but all of the managers have 20+ yrs and the average tenure is 12 yrs. We came from a legacy company several years ago so that may have a lot to do with it, but there were layoffs before as well. Greed has got the best of our country and in some ways GE as well.

  • To: in shock…. and Concerned Employee

    Before you call the Ombuds Hotline, I would get/use a tape recorder to tape/record the “Senior Leadership” a few times. This will be your only option you will have to protect YOU. However, working in this field you will need to keep your lips zippered – not even your best friend at GE. After you have at least 3 recordings…you have saved your life at GE.

    When you call the Ombuds Hotline it will be anonymous and no caller ID. It’s against the law to state to the employees that the Ombuds hotline is anonymous and than have caller ID. They say “NO RETALIATION”…I don’t believe that. However, you will be 100% safe because you did your homework by taping. Because if you’re on the lay off notice list of names….they will probably see it as…you received your LOW and this is why you are calling the Ombuds hotline.

    Do NOT mentioned to the Ombuds hotline that you have a tape. This is only to protect YOU if they try to twist and turn thinks around. Good Luck!

  • Did you see Immelt on CNBC this morning?

    First of all, it is ‘Putin-esque’ for him to appear on any NBC channel to begin with – like Putin appearing on a state-owned TV station. Hard questions much? Not!

    He the ultimate salesman – but more like used cars, in this case. What a sales job this guy did! Every other sentence was “you know” or “let me tell ya…”.

    The market knows very well what dire straits GE is in. That is why the stock is in the toilet – and likely to go further! Can you say ‘single digits’? If you’re inclined to buy any GE stock, hold off!

    I have a hard time understanding how a company with a profit of $8 billion is laying off ANYONE….

  • Yes!!! Could you believe Jeff?? The best part of this presentation is when it was time for Q and A…Keith got a little stumble on his words…didn’t know how to answers questions. Why would you tell the world you will answer “Questions” when you end the call early?

    How about on the Slide “GE Cash” on the right hand side it states “GE EXCLUDING GECS” so Jeff and Keith…Are you telling the world that these are not the real numbers? This raises the RED FLAG in the business world. Why would you both exclude a division from the balance sheets? If you demand your employees follow the INTEGRITY/THE SPIRIT & LETTER BOOKLET you need to do the same.

    Enough of this…I don’t own any GE products nor have stock…God Bless America!

  • To: in shock… definitely follow through with your issue of harassment – no one should have to go through this type of trash in the work place. Since BLG in Chicago is a group that is easily identified, it could be very easy to figure out who you are and then the “sexual pervert” just might be able to identify you and make your day even worst. Stay strong and most importantly do not think that you have to take this crap from anyone, from the mailroom or up to the CEO!!!

  • From Marketwatch:

    “On Fox Business Network, Vanguard Investment’s head of fixed income portfolio management, Robert Auwaerter, said GE has been trading at a level that suggests an A of high BBB credit rating rather than AAA, adding either the market or the credit rating was wrong.
    “The credit rating is wrong,” Auwaerter said, according to a Dow Jones Newswire report.”

  • Well…I wonder why Americans are receiving lay off notices! Check this link out..GEE I can have a job for another 3 years.

    Former Merrill Lynch CEO spent $1.2 million to decorate office and only for him to enjoy less than one year!

    http://cosmos.bcst.yahoo.com/up/player/popup/?rn=4226712&cl=11678020&src=news

    It’s time to freeze all assets! Justice anyone? Time to slash all of these white greedy people of the books!

  • GE’s AAA has been a running joke amongst institutional investors for some time. GE receiving a AAA is very similar to Brett Favre getting voted into the pro bowl for his 2008 performance. A big name garners a lot of favortism, sad but true.

  • Yes, you’re correct. GE credit rating is wrong….If GE had a great credit rating the stock would not be at $12….

  • The piper is coming to GE’s doorstep. It doesn’t matter if you have great products to sell and if there is demand for them if no one has money to pay for them. GE is no different than any other company in that regard, and that is what no one seems to be focusing on. Jet engines, turbines, and power plants? Great. Who’s buying?…

  • To CNBC Interview:

    You’re correct…no one has money who will buy? Well, we can all go and get credit from GE Money!

    After all a few friends of mine that received the axed from GE Money…are charging their credit card to the max and good luck GE money getting it back.

  • Man, I wish I had read this article earlier (April 2008):

    http://theeverymanblog.wordpress.com/2008/04/11/the-trouble-with-ge/

  • 2009 Outlook for GE

    A lot of people I’ve been talking to are real financialbulls on GE (General Electric), I say stay away from this stock and here’s why.

    GE is not really a “diversified industrial corporation;” it’s more of a highly leveraged financial conglomerate that will be in deep doodoo as $100′s of billions of debt starts coming due in 2009. Last week’s much ballyhooed announcement of how they plan to re-invent themselves in ’09 sounds good in sound bites for the press, but the probability that they can actually turn those plans into reality is slim. (They’ve already tried to sell some of their industrial divisions without success.) Outside of their financial group, a lot of their manufacturing divisions fall into categories now in decline–aircraft parts, home appliances, lighting fixtures, broadcasting, etc. (And GE’s struggling financial operations have traditionally financed big-ticket sales for their industrial divisions–think GM/GMAC.) No doubt they’ll eventually be classified as “too big to fail” and get a government bail-out but not before their common stock has been totally trashed.

    GE is actualy in a mess with declining sales volume across all lines of business. GM is looking to return two corporate jets leased from GE CApital. No takers for the sale of their credit card busines and also no takers for the appliance business with the Korean announcing publicly that they were not interested. Medical equipment sales will be down significantly as hospitals cut back on capital budgets due to marketly lower donations during the tough times (some of the very wealthiest donors have been hit the hardest in the market meltdown ).

    Their large industrial loan portfolio is underwater as customer default rise and late payments payments increase dramaticaly. Aircraft leasing is softening fast as consumers stay home instead of flying. IN short I cannot think of one reason to own this stock. I do not for a minute believe that they can maintain the dividend for the entire year. The div of $1.24 does not compare favourably to the much reduced earnings now cut by some analysts to $1.65 (not much wiggle room here at all). And didn’t Citicorp swear on a stack of bibles a year ago that they would not be cutting the div when Merideth Whitney said they would absolutly have no other choice (and they cut in not once but twice). Also heard the same kind of assurances from Lehman Brothers when David Einhorn had the temerity to point out their improper marks on Level II and level III assets. GE has a ton of debt some 600 Billion, with lots of level II & III and they are not disclosing the marks on it, This is an accident waiting to happen. Go to seeking alpha and read their insightful analysis for good hard look inside GE.

    GE’s exposure to the financial crisis is too great and the giant is destined to fall further. But that could mean that GE has to try all the harder.

    Interestingly, Paxton put up that comment on December 21, when GE’s stock was $16.50. On Friday, it closed at $12.03, which is a drop of nearly 30%. How much more can GE fall? It’s been a long slide from the peak of the Welch era, when the stock was nearly 60.

    But as Paxton shrewdly observes, “No doubt they’ll eventually be classified as ‘too big to fail’ and get a government bail-out but not before their common stock has been totally trashed.” Which is to say, the company will be rescued from bankruptcy by the feds, but not before there’s a lot more pain for shareholders. And no doubt a lot more Obama-sucking-up by Olbermann, Matthews, and all the rest, who don’t need to be reminded that dismal Nielsens aside, the audience that really matters for MSNBC is inside the White House. So get ready for a lot more Obama praise from MSNBC, and, for good measure, CNBC and NBC.

    You can count on it. Keith, you’ve been a star performer in Obama’s troupe for a couple of years now, but soon, you are REALLY going to have sing for Jeff Immelt’s supper.

  • FYI…

    The same words might be used to describe all of 2008 for parent company General Electric, which saw the value of its stock tumble 60 percent. Earnings for the year were down 19 percent to $18.1 billion. “In a very tough environment, we delivered fourth-quarter business results in line with expectations we provided in December,” Chief Executive Jeff Immelt said in a statement.

    *******At a company where double-digit gains have long been the norm, earnings fell 67 percent at GE Capital finance and 86 percent at its lighting and appliance unit.*****

    ***. Why was the lighting and appliance unit results excluded from 3rd QTR 08 results????] Jeff…you need to start telling the truth about GE balance sheets. I can bet your bonus, if the Appliances business was UP 86% I’m sure you would not have a problem including in the 3rd QTR 08 results?****

    Immelt reports that GE ended the year with a backlog of $172 billion in orders, but he expects 2009 “to be extremely difficult.”

    **** [Yes, of course, it will be difficult...You can not sell the appliance unit and/or any poor performance business to off set the balance sheets - - come on now, the world doesn't need to graduate from Howard to figure out your pony and horse show].

    ******”We have positioned GE to perform through this cycle and return to double-digit growth in a post-recession economy,” he said.****** [The lay off of 11,000 employees will bring in double-digit growth]

    *** You have stated this before and it’s false information [why make a false statement, Jeff?]

    For now, however, GE earnings come as bad news for owners of GE stock, widely believed to be the most commonly owned stock in Erie County. The stock closed Friday(January 23, 2009) at $12.03, down 1.45, or 10.76 percent.

  • does anyone have any more word about layoffs in the NYC/CT offices this coming week?

  • Yes! It will start on Tuesday, Wednesday and Thursday in Chicago, NYC, Norwalk and Danbury….You all should call in sick on T, W & Th. :) .

    Keep your HEADS UP HIGH and DO NOT believe any words your HR Manager or Manager says. They will pretend they will cry and act with a :( face and feel so bad for you….as soon as you’re out of the office they will email each other stating….this one wasn’t bad, and 4 more to go :) . Adm. Assist. in the Chicago office has seen these emails. This is called – NON-Trust, NON-Integrity and NON-Respect GE way.

    DO NOT SIGN any notice or release before you see a lawyer.

    If you have any questions, regarding your Lay off Notice and/or benefits….put it in “black and white” send via email and keep a copy. They will [speak] promise you the world, once you’re out…they will not speak to you.

    Friday will probably be your LOW Benefit package conference call which is mainly reading from a script and it’s a privacy violation when you’re asked to ask questions. The whole world knows what questions you’re asking….it’s should be private.

    HR is truly unprepared for this massive lay off!

  • To Rumour has it: Are still currently at a GE location? Any news on the remaining Stamford locations? GECAS had 40 cut last week.

  • Was GECAS on Friday? EFS has done lay offs already. Who else is in Stamford? Treasury?

  • GECAS cut 40 out of 100 last week Thurs/or Fri.. Treasury is in the same building. No status yet.

  • I heard GE GSF is Tuesday – San Fran is getting the axe.

  • Is GE GSF part of CFS (old)?

  • Everybody – that DC law firm that is mulling whether to move forward on a class action lawsuit against GE on behalf of those laid off is supposed to be making a decision later this week. If you haven’t already called to speak with them, you may want to do so. David Sanford is at 202-742-7780.

    I believe they are considering a suit based on age discrimination (anyone 40+), but may consider other grounds – on an age or other basis.

    No harm in seeing what your options are. Don’t forget – this is the same firm that is handling the $500MM class action sexual discrimination law suit against GE on behalf of all women in the firm…

  • Is GE GSF part of CFS?

  • I spoke with Mr. David Sanford last week. Very professional and very knowledgeable. Their paralegals will talk to you first and know your case. Then they will decide whether to move forward. In other words, if they think you don’t have a case they will tell you. They only get a percentage of your recovery if you sign a retainer agreement with them.

    You must think that I’m advertising for them. I DID NOT know them at all until two weeks ago. They never asked me to solicit any other former employees. I’m glad I made that phone call.

  • yea i think GSF is part of CFS.

  • Lots of Layoffs Translates to Lots of Work for Employment Lawyers…here they come David Sanford.

    This Message goes out to: Lorene Schaefer

    Lorene – If you’re reading this blog…can you provide your address and/or phone number?

    We would like to speak to you. PLEASE!

    We are so proud of YOU. We know YOU can reach the starts. Keep fighting and don’t look back.

  • WE KNOW YOU CAN REACH the STARS!!!!

  • Well tomorrow will be CFS – Norwalk and CS – Danbury. As stated above HOLD YOUR HEAD UP HIGH and Reach the STARS.

    If you’re a New Yorker…you will understand the name :)

  • To: Sanford Whittels Class Action Lawsuit and Action

    Thank you! I will reach out to David tomorrow. Yes, I heard from numerous employees they are the the best!

    Ok…I’m not from NY and did a google search on 103.5 KTU…I too like disco :)

  • To 103.5 KTU – Love that show and segment! How do you know CFS will be tomorrow in Norwalk?

  • we’ve been hearing that the 28th is doomsday in capital. Any confirmations of that? Also heard that layoffs will continue into the 2nd quarter.

  • TO HMM – RUMOR….IT WILL DEFINITELY WILL HAPPEN THIS WEEK.

    WE WILL SURVIVE

    First I was afraid
    I was petrified
    Kept thinking I could never live
    without you by my side
    But I spent so many nights
    thinking how you did me wrong
    I grew strong
    I learned how to carry on
    and so you’re back
    from outer space
    I just walked in to find you here
    with that sad look upon your face
    I should have changed my stupid lock
    I should have made you leave your key
    If I had known for just one second
    you’d be back to bother me

    Go on now go walk out the door
    just turn around now
    ’cause you’re not welcome anymore
    weren’t you the one who tried to hurt me with goodbye
    you think I’d crumble
    you think I’d lay down and die
    Oh no, not I
    I will survive
    as long as i know how to love
    I know I will stay alive
    I’ve got all my life to live
    I’ve got all my love to give
    and I’ll survive
    I will survive

  • First I was afraid….I was petrified ABOUT GE
    Kept thinking I could never live without MY GE BROKEN APPLIANCES by my side
    But I spent so many SLEEPINESS nights….thinking how you did me WRONG
    I grew VERY strong….I learned how to carry on WITH A POSITIVE ATTITUDE
    and so you’re back TO TRASH ME UNDERNEATH THE RUG from outer space
    I just walked in to find you IN MY MANAGER OFFICE
    with that sad :( look upon your face HOLDING THE PINK SLIP
    I should have changed my stupid lock AT THE LOBBY THIS MORNING
    I should have made you leave your PARKING PERMIT BADGED AT HOME
    If I had known for just one second…you’d be back to DESTROY me

    Go on now go walk out the door WITH YOUR CRAPPY APPLIANCES AND LOANS
    just turn around now….’cause you’re NOT welcome anymore IN MY LIFE
    weren’t you the one who tried to HURT ME with A FAKE SORROW goodbye
    you think I’d crumble AND DIE…you think I’d lay down and die FOR GE
    Oh no, not I….I/WE WILL SURVIVE WITHOUT GE
    as long as i know how to LOVE NOT THE SPIRIT & LETTER WAY….I/WE know I/WE will stay alive
    I’ve got all my life to live IN A POSITIVE NON-INTEGRITY GE WAY
    I’ve got all my LOVE to GIVE TO MY OTHER REAL GE EMPLOYEES
    and I’ll survive….I/WE WILL SURVIVE :)

    A GOOD ONE…

  • From AP, “GE attorney reaches settlement in gender discrimination lawsuit”

    http://biz.yahoo.com/ap/090127/ge_discrimination_lawsuit.html?.v=1d

    As note above, David Sanford represented Lorene Schaefer in the case.

    Does this mean that only Schaefer and a few other female employees settled? Or the settlement includes the other 1,500 plaintiffs?

  • Clearly, Lorene had a good case.

    Do those of us who have been laid off?

    This is an opportunity for GE to ‘clean house’.

    I suspect everyone’s particular situation will be different. So, how can we all have something in common when it comes to a possible class action lawsuit?

    Some will be able to say it was age discrimination, some gender discrimination, some something else.

    What would be the single thing everyone has in common – other than that they’ve been laid off due to ‘restructuring’?

  • 1. Each situation will be different.

    2. No need to be a class action lawsuit…any reason why you state this comment?

    3. Gender discrimination

    4. Something else

    5. Management NOT following the guidelines and rules that every employee needs to follow.

    6. Due to privacy issue and until legal documents are filed…can’t spill the beans!

  • This goes out to Lorene Schaefer.

    I’m sure you’re glad that this is over.

    However, I’m VERY HAPPY that GE finally admit to taking some actions….

    “Will contribute to GE’s programs focused on developing women in its executive ranks”

    huh..want happens to other women below the executive ranks?

  • Any comments on “the axe falling”?

  • Apparently, GE is nowhere close to one of the best companies to work for:

    http://money.cnn.com/magazines/fortune/bestcompanies/2009/full_list/

  • is today the day?

  • More Lay offs at GE 201 today Weds. 1/28. confirmed.

    No other details, just heard from another person.

  • Today probably is the day, but with the snow and predicted ice in the northeast, many people stayed home.

  • Hey @Worried, where is “201″ ?

  • 201 is probably 201 main ave, in norwalk…its where the commercial finance offices are, the old CFS and RE, mainly

  • Where is “201″ ?

  • 201 Main Avenue, is located in Norwalk, CT. It’s the OLD (Rich Laxer) CFS division. Now the NEW Division it’s called CLL run by (Dan Henson).

    The person is correct about the delay….due to ice and snow in the northeast area today many employee worked from home today. I hear Danbury, CT is schedule for tomorrow…however, I’m not sure if this is 100% correct. Capital Solutions is located in Danbury.

    RE is located at 901 Main ave, Norwalk, ct

  • Lorene’s case was a class action suit. Sanford Whittels said they will consider whether to put forth a class action suit by Friday, based on the discussions they’ve had with many of us.

    They won’t do so unless they think they will win. We shall see…

  • The scythe swung again today, taking out lots of sales, and I hear, not a few risk professionals across the country. GE is going by the book, treating “valued” employees like numbers, not people. They are breeding an awful lot of unhappy folks who, if they felt better about how they had been treated on the way out the door, might have been at least neutral, if not helpful allies to GE when they land new jobs and end up in positions to do business with GE–or not. Given employees’ distaste for the way they’re being “handled,” and considering the magnitude of the headcount cuts, I wouldn’t be surprised if the spawn of these mass layoffs remember all of this after the dust settles, and not in a way that advantages GE. Even some of those who are surviving the cuts–at least for now–are prepared to walk as soon as the employment market improves, and feel that the environment in the company will be very distasteful for those who remain.

  • yea 201 Main got hit today. i think the corporate lending and media communications group lost 35% of its people

  • For those who got axed

    PLEASE TAKE THIS TIME TO RELAX AND SPEND QUALITY TIME WITH FAMILY. REMEMBER FAMILY IS MORE IMPORTANT THAN GE. ALWAYS REMEMBER WE’RE JUST A NUMBER WITH ANY COMPANY!

    I STRONGLY BELIEVE THAT GOD CLOSES ONE DOOR AND OPENS A BETTER DOOR FOR ALL OF US. ALWAYS KEEP A POSITIVE ATTITUDE, AND WE WILL MAKE IT! THIS TIME AROUND WE WILL HAVE MORE TIME TO SPEND WITH OUR FAMILIES.

    PLEASE KEEP THIS IN MIND IF YOU HAVE YOUR HEALTH…YOU HAVE EVERYTHING YOU WISHED FOR :)

    FYI –
    NOW IT’S TIME TO CALL YOUR CABLE, TELEPHONE, CELL, LIGHT, WATER, CAR & HOUSE INSURANCE, CREDIT CARDS COMPANIES AND ETC., AND STATE YOU’RE LAID OFF TO GIVE YOU A DISCOUNT. WHEN SOME COMPANIES SAY NO…I JUST TURNED AROUND AND SAY…WELL I NEED TO CANCEL MY SERVICE…I DON’T HAVE NO MONEY TO PAY YOU. THEY SAY CAN YOU KINDLY WAIT I WILL ASK MY SUPERVISOR? THEY CAME BACK AND SAY YES. IF THEY DON’T DO IT…TAKE YOUR BUSINESS TO SOMEONE ELSE. ALSO, IF YOUR BANK CHARGES FEES, MOVE TO ANOTHER BANK. BANKS MAKE MONEY OFF YOUR MONEY…NO NEED FOR US TO PAY FEES??

    LOTS OF HUNGRY PEOPLE WAITING FOR YOUR BUSINESS THESE DAYS. YOU CAN RECEIVE LOTS OF DISCOUNTS.

    GOOD LUCK TO ALL

  • To my fellow former GE employees:

    Keep your heads up and be strong. “Tough times never last, but tough people do!” The same is true for tough companies who treat their employees the right way in these tough times, not GE. GE EFS made $2 million net profit per headcount in 2008 (a record) and still laid off 15% of its employees. It’s an absolute disgrace. This sort of thing will always come back to bite them in the end.

  • confirmed massive layoffs at CFS today. More to come tomorrow and next week in the rest of capital. Likely to be on the CEF businesses. Anyone heard other things?

  • TO ALL MY FRIENDS

    These past few weeks, it’s been horrible to get up and go to work at GE (i’m glad it’s over for me). The moral at GE went down the tubes. Employees are very sick of the stress that GE has cause.

    GE will pay back someday soon….the employees left behind are not going to be able to handle all the work load causing a major slip ups…may problems will come back and hurt GE in the near future I can guarantee. And for those of you left behind, please don’t think you’re save…this will not be the end…especially if GE loses the Triple A rating….as stated above Immelt can’t always play the pony and horse show….all of those false statement he made since the beginning of 2008…are coming back right now to bite GE in the A$$.

    If GE was the most admired company to work for….Immelt should have cared for his employees…however, he was out for himself only. With this bad economy, I just recently received my raise (I was totally shocked), but can you refuse if they’re giving you some extra $$? What amazes me is, how can GE in these bad times work on bonuses? I’m assuming just like Merrill Lynch president purchase a $1,400……yes, $1,400 trash can for his office, and now my friend is sitting on the unemployment line just like me.

    Time will tell with GE. I can say…I will NEVER work for GE again…they treat employees like slaves and I’m above that. I also do not understand…how many people use to say…oh you get in at GE and you’re set for life……what in the world did they see??? I’m glad I had an opportunity for me to see the “real world” inside GE….a big male ego.

    I only had 2 GE products in my kitchen (I have MAYTAG and SEARS BRANDS)…my grandma old can opener and an old GE coffee maker…I went out to the store when I came back both were broken and in the trash. My daughter doesn’t want to see any GE products in my house. She is also begging me to remove my GE water heater…she stopped going to McD’s, Subway and etc…..She states GE will not get 1 penny from me she said!!! I have decided to do the same. You go girl….

    My sister-in-law works at PHILIPS Corporate office…instead of lay offs PHILIPS decided to have a 4 day work week and not get paid for 1 day for 95% of employees. PHILIPS will revisit every 3 months. Now you can call this a company that cares about their employees.

    So remember forget about GE products and purchase PHILIPS brands only…LOL

  • What groups in CFS were hardest hit with layoffs?

  • To: Rotten x employee

    Phillips is cutting 6,000 jobs…if you want to boycott all companies that do layoffs in times of contraction, disconnect your power, water, and stop buying just about everything.

  • I wish we can boycott all companies. We would “CLEAN” all of the GREEDY executives.

    This is reason why we’re in this mess!!!!

    Take a look at Madoff? You call this Professional business with MBA and Justice?

  • St. Louis got hit on the 28th. A lot of the people in the office have given notice. The other half will stay til the office is closed, which will be soon.

  • Sorry to hear this news.

    Which office is in St. Louis? CFS or Capital Solutions?

  • The heinous terms that the”lucky” GE Cap Employees who do not get laid off will get to live and work under are starting to reach daylight – all employees who are not laid off in this go round will be receiving an “offer” letter for the positions that they currently hold – with possibly reduced compensation. The “offer” letter must be signed and returned within specific amount of time or the employee will be considered terminated – no severance package. There’s your “Global Employer of Choice” for you.

  • To those who got the axe at GE Capital and to those scheduled in the next wave (my turn)

    GE was once a tremendous place to work and grow. It is now a shell of it’s former self – My synopsis of why GE is in the situation it is in follows:

    Sr Leadership at GE completely let down and ignored their employees. The axe hit the rank and file and hit them hard but somehow completely missed the SEB and Officers of this company. Unfortunately this is the new GE, where the “leaders” are guaranteed ridiculously high paying jobs with little to no accountability. Here we are in the middle of a recession/depression, the stock is 1/5 the value it was 10 years ago and the Sr leaders at GE Capital do not have the slightest idea how to deal with it. There is no coherent strategy (if there was they would have communicated it). There are leaders in this company (Capital) who were ill equipped in a decent economy, now in this situation their lack of capabilities have become ever more obvious.

    Jeff I. has got to go. He has made terribly poor portfolio management decisions over the past 8 years and on top of that has proven to be a poor judge of talent (hiring and motivating) This talent has not surprisingly been unwilling to communicate to Jeff what is actually going on with our customers and thus when Jeff then makes very public promises to the press & stock analysts that shortly thereafter prove erroneous. If he had more open lines of communication with capable Sr Leaders his credibility would not be nonexistent.

    GE greatness exited about 6 years ago and in the past 3 years we have been living off our legacy. The shine is now off the meatball and all employees are in for a tough next 3+ years. Once the AAA rating disappears (internally the bet is May 09) then Jeff will be gone. His exit will start the healing process as there will be a corresponding elimination of the existing weak leadership team. Then and only then will GE have the chance to fully recover.

    True leaders would have addressed this crisis like Iaccoca did or Caterpillar recently communicated. A true leader certainly would not have disproportionately impacted all levels below SEB.

    Good luck to you all.

  • View from the Bottom – Not sure what you are talking about regarding the employees that were ‘lucky’ to stay on. I was one of the few in our group to stay, but thats because I make substantially less when compared to the ppl they laid off. You mentioned that we now have to sign new offer letters? Where did you get that info from? I haven’t heard/seen anything regarding that and don’t see how that would make sense. Please provide additional details if you can…

  • Its sad…all GE is doing is setting itself up for a mass exodus in the next 2-5 years. Aside from all of the talent they’re kicking out the door now (with no apparent eye for who has been delivering for the company and who hasn’t)…the people that are left are just gritting their teeth and hanging on.

    Loyalty is now officially dead.

    I dont know a single person, senior or junior, who doesn’t think the place is a complete mess and isn’t eager to get out into the job market as soon as the recession turns around. Of course, the clueless EB/SEB/Officer crowd that are part of the “boys club” and have $1 strike price options are just fine. Jeff doesn’t seem to know what to do with leaders who don’t succeed, so he allows them to fail upward…or at least sideways. Back in the day with Jack, we were all afraid to fail because he would shoot us…now that fear is gone because even the failures can hide by quickly moving into their next job.

    So…half the talent laid off now, half the talent lost later. The only people left will be the yes-men who live their lives with grins on their faces, sun in their hair, and country club memberships in their pocket.

    GE stock price is going nowhere.

  • It’s time to wake up…

    The next steps for GE Capital once lay off notices are complete (meaning this wave).

    1. For many positions at GE Cap you will need to re-post for your own job.
    2. I can tell you…you won’t be the only person interviewing for your own job.
    3. HR will set up interview schedules…will waste everyone’s time.
    4. Now here is the catch…..IF YOU ARE LIKED you have your own job.
    4. IF YOU ARE NOT LIKED….you will receive a sob story from your HR Manager tell you….we’re so sorry, but you didn’t get the job.
    5. oh well, your last day at GE is xx/xx/xxxx with NO lay off package. Good Luck!

    I can tell you…this is already in the works.

  • So we call #5 – Termination with Extreme Predjudice?

  • Forgot to mention…..

    The “offer letter” is for those who are not in the GE Capital business. AND

    This is done by NOT posting the job in COS, so other employees have an opportunity to apply for….this sure sound like a RED FLAG to me!!

    Take notes meaning writing notes on a sheet of paper (date, time, to, from, cc and re) because you will never know when you need them. Do not copy or print…it can turn to a copyright issue.

  • You could be correct, but I honestly haven’t seen anything about that as of yet. Any idea on timing? Can they really do that? Since layoffs were just announced this past week, I’m assuming something (if anything) would happen by mid-Feb? Thoughts?

  • Whats the latest with Antares? GSF as a whole?

  • dont think that the layoffs are over. more people were laid off yesterday in CT, and there’s more to come next week and the week after. Trying to think through the logic of when they’ll do what is pointless, so don’t stress about it.

    try to focus on the fact that they don’t do layoffs on fridays and mondays, so you have at least 3 and a half days to relax and enjoy your self. Just don’t spend any money, because come tuesday – bye bye.

  • Did anyone hear anything back from Sanford Whittels? Is there going to be a class action law suit?

  • As far as I know, the decision has been delayed since the layoff is ongoing. You should give them a call to find out the details.

  • Why? Are you planning to join us?

  • its only for roles that they are getting rid of completely in the restructuring. if a group is getting merged into a new entity, there won’t be layoffs, merely people applying for the roles and a selection process.

  • are you meaning if more than one person applying for a role the other is out of a job?

  • I think that if you had a job before the restructure, and then dont have a job after, then you’ve been laid off. However, if they offer you a new job and you don’t take it (whatever or wherever it may be, at whatever pay grade), you’ve just voluntarility resigned.

  • I might be inclined to join if others were doing so, depending on the basis of the suit. Sanford wouldn’t accept the case unless they thought they could win, as they did with the sexual discrimination suit they just settle on.

    I think Sanford must know that they have to get moving on this if they plan to do so. Otherwise, the 45-day period for signing release letters will have expired…

  • http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches-020209.aspx

    General Electric (GE, news, msgs) Hondwas down 4.2% to $11.62, its lowest level since December 1995 (adjusted for splits). Briefing.com said the weakness was due to more concerns about GE’s capital arm, saying it was “exposed to shaky commercial and consumer loans that could drive further losses.”

    Not good at all…and if we loose our Triple A rating…we’re ready for a crash in the Hudson River

  • Any news regarding lay offs today?

  • Just wanted to let you know you are speaking to my soul, so much that I submitted an article to several magazines this week on this particular topic. When I was younger I would have been beating myself up about the job market, what will I do next, etc. I am not stupid; of course I am concerned. But it makes absolutely no sense for me to be miserable, deprived and all around unwell at this time. It’s only been a few weeks for me, but at 41 years old, I know that while I’m waiting for the phone to ring after sending out resume after resume, it’s perfectly sane to enjoy the simple, inexpensive pleasure I could not only a month or so ago. A bubblebath in the daytime; going to the grocery store during the day when it’s practically empty instead of packing myself into crowded aisles on a Saturday; getting a full eight hours of sleep every single night just because I can. I download audio books for free from the public library so I can keep the tv off and enjoy something new, fresh and engaging.

    While friends of mine (I’m sure) are certain I’ve lost my mind, I just can’t imagine how running around like a chicken with my head cut off would do me any good. I might be unemployed another month or another six, but is it any better to feel and look depleted, anxious and stressed when going to interviews? I think not, so I’ve got to run now. Time for my steam facial. NO matter what I do, the phone isn’t going to ring any faster, so why not be gorgeous, healthy and content while waiting? I start every morning with a delicious breakfast, a good workout, time for prayer and then I’m off and running to the sites. This economy might break my bank, but I’ll be damned if it’ll break my spirits. As Ali would say, I’m just too pretty!

  • Obama to detail compensation limits on executives

    IT’S ABOUT TIME WE STOP THESE WHITE GREEDY EXECUTIVES…

    After all I can use a $5,000.00 shower curtain [MCI], $1,400.00 trash can in my home office [Merrill Lynch] and I can also prepare a lavish wedding at the price tag of $450,000.00 [AIG] all these luxuries with your money.

    WASHINGTON – Call it the maximum wage. President Barack Obama wants to impose a $500,000 pay cap on executives whose firms receive government financial rescue funds, a dramatic intervention into corporate governance in the midst of financial crisis.

    http://news.yahoo.com/s/ap/20090204/ap_on_go_pr_wh/bailout_executive_pay

    Obama – DIG VERY DEEP…lots of scams swept underneath the rug. If you need help call me!

  • To TPS:

    You sound well grounded on all this. Good for you!

    What was GE to any of us? A pay check. That is what the next job will be, too.

    Best to remain sensible about all this.

    It is a chance to do something new, different. Or even be free of the corporate shackles – forever.

    EMBRACE IT!

  • There was a report on GE today on Bloomberg saying GECC is going to have to rely on GE Corporate to manage its balance sheet, and it speculates that the $5B in net income GECC is projecting for 2009 may be way off the mark. UBS believes there will be no net income this year because of all the toxic assets on the balance sheet.

    Can you say “single digit stock” and “goodbye AAA”?…

  • I sure can..and I can say I knew this was coming down the road!!!!

    After all Jeff I….always stated false after false information about GE!

    The biggest mistake Jeff I did was to put the appliances business “For Sale”! This tells the entire world…GE is heading down a hill for a big disaster.

    Also, if GE was so good…why in the world is GE stock at $11.64 today per share.

    Ladies and Gentlemen…it’s time to choke your pride and sell your GE stock (investment in your 401k) at least we all be a few dollars ahead of this crazy game. Because once we hit May 2009 and the loss of Triple A GE stock will be down to $3.00 per share.

    Yes, Lets use this time to relax and enjoy our time off.

  • GE Capital’s looming time bomb for 2009

    For those who are left at GE…please read this article and listen to the video.

    GE Stock is down 30% since January 1, 2009. For those of you who are close to retirement…you should be very careful on how you invest your nest eggs.

    http://www.creditwritedowns.com/2009/02/ge-capitals-loomng-time-bomb.html

  • This just shows how Immelt is out of touch with the current situation and maybe himself:

    http://blogs.wsj.com/washwire/2009/02/05/ges-immelt-pay-caps-not-good-idea/#comment-297046

  • Anyone have any idea if bonuses are $0 for all people let go? Should be paid next week I would think.

  • Did you sign your “Notice of Layoff” and the “Release”…if you did…you’re doomed!

  • I have a hard time understanding why people would sign the “Release” before knowing whether they get screwed up on their “promised” bonuses.

  • I too have a hard time understanding. I hope HR didn’t force you into signing these documents.

    Trust me…if you hand in the release at the 50th day instead of 45….GE will be happy to receive a signed release….way too many bugs in this lay off notices!

    Due to the volume of lay offs in Jan 09…HR was very sloppy and many bugs are surfing in the air at this time.

  • I can tell Jeff I is liked by many people around the world. If I was him I be hiding in a safe place. Check out the link below….not to many good comments about Jeff I and GE!

    http://blogs.wsj.com/washwire/2009/02/05/ges-immelt-pay-caps-not-good-idea

    God help us!

  • i think your are entitled to your 08 bonus. any idea on the timeline of payment. How soon after the BoD meeting is the bonus paid?

  • I hate to say this, but in your Notice of layoff was a statement about bonus…and it can also be $0 dollars. So if you signed your Notice of layoff….you may be doomed as stated above.

    I believe bonuses are paid by the end of Feb?

  • I know what you are saying. I signed the Notice for the sake of keeping the health care. That may come back to haunt me in the end. They can definitely give me zero bonus. But I thought at least I still have the my legal options if I don’t sign the “Release”. Oh well, I may have fallen into one of the traps…

  • was on the CFS risk call this evening at 7pm and heard that the Board is meeting tomorrow to approve bonus numbers. historically, the board meets the week before the bonuses are paid out…ie the bonuses are set to be paid next week (13th). this is the first time that I am bonus-eligible since I’ve been in one of the programs. can anyone who was credible information confirm this?

  • Did the Notice of layoff state anything regarding the bonus? You should not sign the release until the end of your term.

  • Yes bonuses are going to be paid out on the 13th.
    Yes you’re going to get your bonus even if you signed the “infamous release” you’re all so into consipracy theorizing about, its a standard document, stop acting as though their trying to screw you.

  • I’m assuming they have not reached you yet regarding (screw you). I would say from seeing, hearing and witness some dirty actions…you should have your eyes open behind your head to.

  • You truly sound like a GE guy. Yes, the notice letter mentioned that those eligible for bonus will get paid. The big question mark though, is HOW MUCH. If someone signed the release, do you think the company has incentive to pay out what that person really deserved???

    Let’s say you get paid a fraction of what you deserved on bonus. What can you do as a laidoff guy? That’s what “screw you” means. Now if you signed the release, you’re truly screwed since you just lost your legal options.

    Even though I haven’t signed my release, I’m not holding my breath on bonuses based on how GE is. But at least I have my legal options.

    In addition, the argument that GE will conserve cash for a “brighter future “so it pays less bonuses for 2008 should not apply to laidoff employees. Since the laidoff employees will not participate in that “future” anymore. I worked my A$$ off the entire year to make your numbers. So pay me my full bonus so that I can move on.

  • This message goes out to Jeff I….

    what happen to your India country. Remember your statement “they are highly educated and low pay people per hour….I’m assuming these Highly Educated people don’t know how to play the pony and horse show games? BTW…by the time 2010 arrives GE will have a new person in your shoes.

    GE India CEO: May Miss 2010 Revenue Target Of $8 Billion

    NEW DELHI -(Dow Jones)- General Electric Co.’s (GE) Indian business may miss its $8 billion revenue target for the year 2010, a senior executive said Thursday.

    “Due to (the economic) slowdown… we may not get it in 2010. It might take a little longer,” Tejpreet Chopra, chief executive of General Electric India, told reporters on the sidelines of an industry event.

    -By Rakesh Sharma, Dow Jones Newswires; 91-11-43563300; chandrasekhar.jayachandran@dowjones.com

    (END) Dow Jones Newswires
    02-05-09 0143ET
    Copyright (c) 2009 Dow Jones & Company, Inc.

  • I least I feel better now….a laid off employee it taking the release signature page serious!

    Good for you, and DO NOT believe what HR, your manager or senior management say to you….because once you sign the release you are history! THEY DON’T EVEN TALK TO YOU….YOU’RE TREATED LIKE DIRT…AND I MEAN DIRT!!!

    THIS IS THE PAY BACK WE RECEIVE AFTER MANY LONG HOURS OF HARD WORK AND MISSED FAMILY/FRIENDS FUNCTIONS!!!

  • UPDATE 1-GE AAA rating unsustainable, div cut likely: JP Morgan

    Feb 6 (Reuters) – General Electric Co’s (GE.N) triple-A credit rating is not sustainable and the diversified manufacturer may have to cut its dividend, an analyst at J.P. Morgan Securities said.

    Fundamental pressure continues to mount on the GE earnings stream, particularly at its finance arm General Electric Capital Services (GECS), and at its Industrial segment as well, said analyst Stephen Tusa, who cut his price target on the stock to $9 from $13.

    “We think the company will need to see improvement in the second half of 2009 to hit the ratings agency target of $5 billion (for earnings) at GECS, and apparently, so now does Moody’s,” Tusa said in a note to clients.

    In late January, Moody’s Investor Service said it was reviewing GE’s triple-A credit rating, which could lead to a downgrade.

    The move raised the risk that GE, which has a hefty finance business, could lose the long-term triple-A rating that has been a cornerstone of its GE Capital unit. A rating downgrade could make it more difficult and costly for GE to borrow money.

    However, Tusa expects the “AAA” rating loss and dividend cut to be the catalyst for a positive change, that may also include a portfolio restructuring at the company and kept his “neutral” rating on the stock.

    Shares of the company closed at $10.85 Thursday on the New York Stock Exchange. (Reporting by Amulya Nagaraj in Bangalore; Editing by Amitha Rajan)

  • Sell your stock and salvage what you can. GE is going to single digits. Everyone knows it. And, yes, it IS going to lose its AAA rating.

    If it can happen to AIG, it can happen to any company.

    It remains to be seen whether management will do the right thing for those who were laid off. Seeing is believing…

  • You’re right! GE IS history!!!!

    These Shareholders have a college education and they will wait until GE stock hits $1.00???? What in the world is going on?????? WAKE UP!!!

    Jeff Immelt + Bernie Madoff = ImMadeoff Meltdown :-( !

    Jeff it’s time to place your MAGIC DREAM WONG in the Hudson River!

    IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!! IT’S OVER!!!

  • Hey All…I’m a small guy factory worker at Ge Lynn….Seems like a lot of 55 and older management types are getting out while the get’ins good….There’s been a hiring freeze on the shop floor since Nov08..Good Luck to you all

  • Immelt has lost all credibility with investors and employees by having to publicly modify his position on the AAA credit rating and dividend payments within less than a month of boldly saying GE will commit to both aspects.
    What’s not been mentioned so far is the toll that this collapse in credibility will have on GE employees, their suppliers, and most importantly, their customers.
    Sadly, how the mighty GE has fallen.

  • You’re correct. As far as the collapse in credibility will have on GE employees left behind is….they need to get ready for another round of lay offs probably in 2nd Qtr 09.

    I can not believe that the entire world didn’t see this coming?? When Jeff I placed the appliances business “FOR SALE”….this was a “STRONG” sign GE was in trouble. AND GOD WILL ONLY KNOW…WHAT FURTHER MESS GE IS IN…MEANING LOTS OF INFORMATION HAS NOT REACHED THE MEDIA! AS ALWAYS…..TIME WILL TELL.

    Is Jeff I worth $19.5 Million? I don’t thinks so. GEE, pay me $9M and I can bring GE to the ground to….ok…I don’t want to be too greedy I will take $4M so I can make sure I take care of my ex (laid off) employees…bring them back to work….lol!

    Jeff I will now blame the economy…as to why GE lost it’s Triple A rating…note in the 8 years he never blame himself. This what happens when you’re greedy and demand “double-digits” performance results from the businesses leaders….these people went out and did the job to please Jeff I. however, these people took many HIGH RISKS matters ….now it’s turning to bite GE in the A$$!!!

    For those who have any GE eggs left (it can’t be much…lol) you should seriously think about your next steps fast….if you’re planning to retire in a few years.

    Below is the bad news:

    GE Braces for a Downgrade

    By Alex Dumortier, CFA
    February 6, 2009 | Comments (3)

    General Electric (NYSE: GE) CEO Jeff Immelt now says that he’s “prepared to run the company as a double-A”. That looks like he’s climbing down from his comments last month that the company remains committed to maintaining its triple-A rating. Of course, it’s not entirely in his hands; as he himself said yesterday: “the ratings agencies ultimately will decide.”

    http://caps.fool.com/Blogs/ViewPost.aspx?bpid=141928&t=01004573131049338094

    GE was a good company…many, many years ago! However, since the late ’70 and forward…lots of greedy executives..that turned GE into a $hit company.

    Immelt can holds hands with Madoff….

  • Jeff is a liar + Liar = Net to the GE Balance Sheets

  • CEOs, Bankers Used Corporate Credit Cards for Sex, Says New York …

    a vice president of NBC Universal (owned by General Electric) * the part owner of a Major League Baseball team who “loves Kelsey” * the CEO of one of the country’s largest private equity firms who met “Cameron” at the …

    http://caps.fool.com/blogs/viewpost.aspx?bpid=142341&t=01002649864375823131

  • Hey….

    Once unemployment checks run out I may be forced to open up a prostitute place…just like Kristin Davis. It will pay the bills and put food on the table until I land an office job.

    Who will be my first client? Any takers?

    LOL

  • This is so TRUE…..

    http://www.eminimaster.com/blog/2009/02/forget-ge-these-are-the-industrials-investors-should-consider-owning/

    My major investment theme this year is to “beware of big bad balance sheets”, which I described in late December. I mentioned General Electric (GE) specifically, but I also followed up with a review that described the company as a “value pit” on 12/29. As the stock rapidly descent into single-digit land, I stand by my contention that this will be a tough year for GE investors. I didn’t offer a prediction of how low I expect it to trade, but I can argue that the stock could fall another 50% and still be too expensive given its balance sheet burdens.

    As I listened to CEO Immelt on CNBC following their earnings last month, I couldn’t help but feel that he just doesn’t get it. To talk about all that cash on the balance sheet as justification to pay a dividend on the common is ridiculous, as that cash is more than encumbered by the 3 billion in Liabilities on the balance sheet. With leverage at 15X (A/E), and tangible leverage at something like 100-1, GE is an accident waiting to happen in this economic environment.

    Jeff your $19.4 MILLION PAYCHECK IS OVER! It’s time to move from your New Canaan, CT ($5.4m HOME) to the Bronx, NY ….YOU AND KEITH S (CFO OF GE) ARE IN LA LA LAND. IT’s TIME FOR BOTH OF YOU TO PUT YOUR DREAMING WONG DOWN.

    Jeff I. and Keith S….your are nothing but LIARS and 2 GOATS in a leaching field heading to the Hudson River!! If you want to make fast money…good luck in VEGAS!

    OBAMA DID THE BEST POSSIBLE THING ON EARTH…BY CUTTING YOU GREEDY EXECUTIVES AWAY.

    This will be a learning lesson for all of you greedy executive.

    IT TIME TO SIT DOWN AND FACE TRUE REALITY!

  • What’s the latest? Are they done for the time being across various GE Capital divisions?

  • the layoff fun begins again this week and next. nowhere close to being done.

  • 15 Companies That Might Not Survive 2009 * Friday February 6, 2009, 11:53 am EST

    Who’s next?

    With consumers shutting their wallets and corporate revenues plunging, the business landscape may start to resemble a graveyard in 2009. Household names like Circuit City and Linens ‘n Things have already perished. And chances are, those bankruptcies were just an early warning sign of a much broader epidemic.

    Moody’s Investors Service, for instance, predicts that the default rate on corporate bonds – which foretells bankruptcies – will be three times higher in 2009 than in 2008, and 15 times higher than in 2007. That could equate to 25 significant bankruptcies per month.

    We examined ratings from Moody’s and data from other sources to develop a short list of potential victims that ought to be familiar to most consumers. Many of these firms are in industries directly hit by the slowdown in consumer spending, such as retail, automotive, housing and entertainment.

    But there are other common threads. Most of these firms have limited cash for a rainy day, and a lot of debt, with large interest payments due over the next year. In ordinary times, it might not be so hard to refinance loans, or get new ones, to help keep the cash flowing. But in an acute credit crunch it’s a different story, and at companies where sales are down and going lower, skittish lenders may refuse to grant any more credit. It’s a terrible time to be cash-poor.

    [See how Wall Street continues to doom itself.]

    That’s why Moody’s assigns most of these firms its lowest rating for short-term liquidity. And all the firms on this list have long-term debt that Moody’s rates Caa or lower, which means the borrower is considered at least a “very high” credit risk.

    Once a company defaults on its debt, or fails to make a payment, the next step is usually a Chapter 11 bankruptcy filing. Some firms continue to operate while in Chapter 11, retaining many of their employees. Those firms often shed debt, restructure, and emerge from bankruptcy as healthier companies.

    But it takes fresh financing to do that, and with money scarce, more bankrupt firms than usual are likely to liquidate – like Circuit City. That’s why corporate failures are likely to be a major drag on the economy in 2009: In a liquidation, the entire workforce often gets axed, with little or no severance. That will only add to unemployment, which could hit 9 or even 10 percent by the end of the year.

    [Want to land a plum job without paying taxes? Here's how.]

    It’s possible that none of the firms on this list will liquidate, or even declare Chapter 11. Some may come up with unexpected revenue or creative financing that helps avert bankruptcy, while others could be purchased in whole or in part by creditors or other investors. But one way or another, the following 15 firms will probably look a lot different a year from now than they do today:

    ***Rite Aid. (Ticker symbol: RAD; about 100,000 employees; 1-year stock-price decline: 92%). This drugstore chain tried to boost its performance by acquiring competitors Brooks and Eckerd in 2007. But there have been some nasty side effects, like a huge debt load that makes it the most leveraged drugstore chain in the U.S., according to Zacks Equity Research. That big retail investment came just as megadiscounter Wal-Mart was starting to sell prescription drugs, and consumers were starting to cut bank on spending. Management has twice lowered its outlook for 2009. Prognosis: Mounting losses, with no turnaround in sight.

    ***Claire’s Stores. (Privately owned; about 18,000 employees.) Leon Black’s once-renowned private-equity firm, the Apollo Group, paid $3.1 billion for this trendy teen-focused accessory store in 2007, when buyout funds were bulging. But cash flow has been negative for much of the past year and analysts believe Claire’s is close to defaulting on its debt. A horrible retail outlook for 2009 offers no relief, suggesting Claire’s could follow Linens ‘n Things – another Apollo purchase – and declare Chapter 11, possibly shuttering all of its 3,000-plus stores.

    [See 5 pieces missing from Obama's stimulus plan.]

    ***Chrysler. (Privately owned; about 55,000 employees). It’s never a good sign when management insists the company is not going out of business, which is what CEO Bob Nardelli has been doing lately. Of the three Detroit automakers, Chrysler is the most endangered, with a product portfolio that’s overreliant on gas-guzzling trucks and SUVs and almost totally devoid of compelling small cars. A recent deal with Fiat seems dubious, since the Italian automaker doesn’t have to pony up any money, and Chrysler desperately needs cash. The company is quickly burning through $4 billion in government bailout money, and with car sales down 40 percent from recent peaks, Chrysler may be the weakling that can’t cut it in tough times.

    ***Dollar Thrifty Automotive Group. (DTG; about 7,000 employees; stock down 95%). This car-rental company is a small player compared to Enterprise, Hertz, and Avis Budget. It’s also more reliant on leisure travelers, and therefore more susceptible to a downturn as consumers cut spending. Dollar Thrifty is also closely tied to Chrysler, which supplies 80 percent of its fleet. Moody’s predicts that if Chrysler declares Chapter 11, Dollar Thrifty would suffer deeply as well.

    ***Realogy Corp. (Privately owned; about 13,000 employees). It’s the biggest real-estate brokerage firm in the country, but that’s a bad thing when there are double-digit declines in both sales and prices, as there were in 2009. Realogy, which includes the Coldwell Banker, ERA, and Sotheby’s franchises, also carries a high debt load, dating to its purchase by the Apollo Group in 2007 – the very moment when the housing market was starting to invert from a soaring ride into a sickening nosedive. Realogy has been trying to refinance much of its debt, prompting lawsuits. One deal was denied by a judge in December, reducing the firm’s already tight wiggle room.

    [See why "Wall Street talent" is an oxymoron.]

    ***Station Casinos. (Privately owned, about 14,000 employees). Las Vegas has already been creamed by a biblical real-estate bust, and now it may face the loss of its home-grown gambling joints, too. Station – which runs 15 casinos off the strip that cater to locals – recently failed to make a key interest payment, which is often one of the last steps before a Chapter 11 filing. For once, the house seems likely to lose.

    ***Loehmann’s Capital Corp. (Privately owned; about 1,500 employees). This clothing chain has the right formula for lean times, offering women’s clothing at discount prices. But the consumer pullback is hitting just about every retailer, and Loehmann’s has a lot less cash to ride out a drought than competitors like Nordstrom Rack and TJ Maxx. If Loehmann’s doesn’t get additional financing in 2009 – a dicey proposition, given skyrocketing unemployment and plunging spending – the chain could run out of cash.

    ***Sbarro. (Privately owned; about 5,500 employees). It’s not the pizza that’s the problem. Many of this chain’s 1,100 storefronts are in malls, which is a double whammy: Traffic is down, since consumers have put away their wallets. Sbarro can’t really boost revenue by adding a breakfast or late-night menu, like other chains have done. And competitors like Domino’s and Pizza Hut have less debt and stronger cash flow, which could intensify pressure on Sbarro as key debt payments come due in 2009.

    ***Six Flags. (SIX; about 30,000 employees; stock down 84%). This theme-park operator has been losing money for several years, and selling off properties to try to pay down debt and get back into the black. But the ride may end prematurely. Moody’s expects cash flow to be negative in 2009, and if consumers aren’t spending during the peak summer season, that could imperil the company’s ability to pay debts coming due later this year and in 2010.

    ***Blockbuster. (BBI; about 60,000 employees; stock down 57%). The video-rental chain has burned cash while trying to figure out how to maximize fees without alienating customers. Its operating income has started to improve just as consumers are cutting back, even on movies. Video stores in general are under pressure as they compete with cable and Internet operators offering the same titles. A key test of Blockbuster’s viability will come when two credit lines expire in August. One possible outcome, according to Valueline, is that investors take the company private and then go public again when market conditions are better.

    ***Krispy Kreme. (KKD; about 4,000 employees; stock down 50%). The donuts might be good, but Krispy Kreme overestimated Americans’ appetite – and that’s saying something. This chain overexpanded during the donut heyday of the 1990s – taking on a lot of debt – and now requires high volumes to meet expenses and interest payments. The company has cut costs and closed underperforming stores, but still hasn’t earned an operating profit in three years. And now that consumers are cutting back on everything, such improvements may fail to offset top-line declines, leading Krispy Kreme to seek some kind of relief from lenders over the next year.

    ***Landry’s Restaurants. (LNY; about 17,000 employees; stock down 66%). This restaurant chain, which operates Chart House, Rainforest Café, and other eateries, needs $400 million in new financing to finalize a buyout deal dating to last June. If lenders come through, the company should have enough cash to ride out the recession. But at least two banks have already balked, leading to downgrades of the company’s debt and the prospect of a cash-flow crunch.

    ***Sirius Satellite Radio. (SIRI – parent company; about 1,000 employees; stock down 96%). The music rocks, but satellite radio has yet to be profitable, and huge contracts for performers like Howard Stern are looking unsustainable. Sirius is one of two satellite-radio services owned by parent company Sirius XM, which was formed when Sirius and XM merged last year. So far, the merger hasn’t generated the savings needed to make the company profitable, and Moody’s thinks there’s a “high likelihood” that Sirius will fail to repay or refinance its debt in 2009. One outcome could be a takeover, at distressed prices, by other firms active in the satellite business.

    ***Trump Entertainment Resorts Holdings. (TRMP; about 9,500 employees; stock down 94%). The casino company made famous by The Donald has received several extensions on interest payments, while it tries to sell at least one of its Atlantic City properties and pay down a stack of debt. But with casino buyers scarce, competition circling, and gamblers nursing their losses from the recession, Trump Entertainment may face long odds of skirting bankruptcy.

    ****BearingPoint. (BGPT; about 16,000 employees; stock down 21%). This Virginia-based consulting firm, spun out of KPMG in 2001, is struggling to solve its own operating problems. The firm has consistently lost money, revenue has been falling, and management stopped issuing earnings guidance in 2008. Stable government contracts generate about 30 percent of the firm’s business, but the firm may sell other divisions to help pay off debt. With a key interest payment due in April, management needs to hustle – or devise its own exit strategy.

  • To: 15 Companies That Might Not Survive 2009

    Why did you post this irrelevant junk? Are you trying to argue GE should be on this list as well? Your post does not belong here. GE will survive for many years. They just need to change the current inept mgmt and maybe spin off GE capital.

  • GE to cut 1,500 at locomotive plant in Erie

    Perhaps GE needs Lorene Schaefer back to do the job!

    http://www.pittsburghlive.com/x/pittsburghtrib/business/s_611109.html

    To: Post

    It’s very useful information for the people that have a full day. This blog is One Stop Read All news! Keep them coming, and it does not mean GE should be on the list.

    Who is going to buy GE Capital now if it’s get spin off? GE Capital is in a complete mess..who is going to buy a trouble business? This is why GE is in this mess…Jeff I couldn’t spin off the appliances business and can not sell the business that do not make profits. Jeff I can not play his wishy washy balance sheets games any longer with this problem economy.

  • We are all assuming that Jeff I. doesn’t want his 2009 annual salary cap at $500,000.00….

    Posted: 02/10/2009 10:18:05 PM EST

    General Electric Co. shifted $9.5 billion in capital from the parent company to its Norwalk-based GE Capital finance unit, accelerating a plan to improve GE Capital’s ratios as Moody’s Investors Service reviews its top credit ratings, Chief Financial Officer Keith Sherin said.

    The board-authorized transfer lowers GE Capital’s leverage ratio to 6-to-1 from the fourth quarter’s 7-to-1, meeting a target that had been set for the end of this year, Sherin said. He repeated the company’s framework for about $5 billion in profit at the finance unit and an

    increase of as much as 5 percent in the businesses outside of finance.

    “We just decided in this environment it would be better to just take the cash we have sitting at the parent, and infuse it as equity into GE Capital,” Sherin told investors at a conference sponsored by Barclays PLC. GE’s board approved the shift Friday for the first quarter.

    GE has lost 66 percent of its market value in 12 months, in part because of concern about declining profit in its finance businesses that span credit cards, aircraft leasing and bankruptcy lending for mid-sized companies. Sherin told investors that individually, the businesses outperform peers and GE seeks to beat Standard & Poor’s 500 metrics.

    “If you look business by business through the portfolio, we’ve outperformed our peers in every single business,” Sherin said. “Financial services is a challenge, not just for us but for everybody. Its out of favor with investors and we get it.

    Fairfield-based GE fell $1.02, or 8.1 percent, to $11.62 in New York Stock Exchange trading Tuesday amid a broad decline in U.S. stocks on skepticism that the government’s bank-rescue plan will work.

    ********Sherin said the stock’s punishment for owning a finance business has been awful. ***********GE also is the biggest maker of jet engines, locomotives, medical-imaging equipment and power-plant turbines, as well as the owner of NBC-Universal media unit.

    Sherin described GE’s loss-coverage and reserve ratios in businesses including credit cards and mortgages to feed more detail to investors who said GE Capital may be under-reserved. The company doesn’t have any U.S. residential mortgages after it sold WMC mortgage in 2007.

    GE, which stopped giving per-share forecasts this year, estimates GE Capital will have to absorb about $10 billion in bad business and consumer debt this year, and ultimately aiming for a $5 billion profit target, Sherin said.

    *************”From an analyst perspective, everybody has a different number other than $5 billion for GE Capital, we acknowledge that,” Sherin said. “There’s going to be puts and takes throughout the year, no doubt about it. We’ve got a plan, we’ve got an operating framework, and every quarter we’ll update people with the actual results.”********************

    The accelerated injection means the $15 billion GE raised in equity sales this fall went entirely to reduce the leverage ratio at the finance unit. Those sales included $3 billion in preferred stock sold to Warren Buffett’s Berkshire Hathaway Inc. GE injected $5.5 billion into GE Capital in the fourth quarter.

    GE Capital has reduced its commercial paper balance to $60 billion and has redeemed all the debt it sold to the federal Commercial Paper Funding Facility, Sherin said. The company also has issued $31 billion of the $45 billion in maturing debt in 2009, Sherin said.

  • Layoffs confirmed for tomorrow (Thursday)… Don’t forget to post details if you get the axe…

  • What companies are targeted for tomorrow?

  • Were there a lot of cuts in Healthcare Financial Services? I heard HFS is being integrated into Capital Solutions?

  • Was this part of GECAS?

  • CDF in Chicago blew out their marketing department.

  • Yesterday was my last day at GE, as I had received my notice in January. When I arrived at the office, I found that my access to the parking garage had been disabled. I mentioned that to my coworkers who had also received their layoff notice. So we all had to parade through the main lobby, carrying out our personal belongings. That was very awkward.

    I did, however, have a nice bonus deposited to my bank account on Friday. It’s nice to know that GE values me!

  • [..] A bit unrelated, but I really liked this webpage post [..]

  • all my employees will have to be laid off tomorrow
    I can no longer support them with this new bill. the gov will have to support them.

  • Hello everyone….Checking in to see how everyone at GE is doing? Still looking for a job since January 2009 – However, I’m enjoying life to the fullest…yesterday I was granted another 26 weeks of unemployment…Thank you GE Capital!

    Let’s communicate

  • Have left GE for 2 years. Recently saw the Fortune Most Admired Companies List:

    General Electric, 2007 ranking #1
    General Electric, 2008 ranking #3
    General Electric, 2009 ranking #9
    General Electric, 2010 ranking #16

    The trend is alarming but not surprising. Given the way GE’s culture has changed in recent years and the different way they treat their employees, they should be completely out of this list.

  • To: Most Admired Says: I agree with you 100%! It’s all BS and how good it is to work for GE….The Company doesn’t treat employees as they should.

    I love it…recently head lines regarding GE Real Estate….cuts to 50%…what happen to 2006-07…when you built the new office at 901 in Norwalk with the 70′s decore…what a bunch of BS…so much money down in the garabe…same goes with GE Capital at 901 in Norwalk…2 flrs that are not workable space. Mr. Neal…do you still work around the hall ways at 5pm? So many fake people. I wish I had the power to let it all out ;(.

  • I love your style of presentation. It is very attractive and appealing.

  • Blogging like you do is such an art and you obviously have that skill here – I don’t but I did find this that made me smile so maybe I can return the favour by making you smile too?

    Children in the dark make accidents, but accidents in the dark make children. :)

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