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.