Yesterday peHUB reported that GE Antares would delay its rumored layoffs until the New Year. Today, we found out why. Thanks to a tip from my Buyouts colleague Ari Nathanson, it appears the mid-market lender and its parent company, GE Capital, plans to lay off members of its staff in one fell swoop in early January (we hear Jan. 8, to be exact).
The initial layoff plan for GE Antares was to occur in two waves, with one taking place last Tuesday and one in January, multiple sources said. However, parent company GE is in the midst of changing its corporate severance policy to provide smaller packages for 2009 layoffs. The conglomerate’s legal team told GE Capital to make all the cuts at once, to avoid discrepancies between the severance packages in the two waves of layoffs.
Because GE Antares hasn’t finalized its layoff list, the firm will have to lay off both groups in January, likely with the new, lower severance package, one source said.