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General Electric to cut 12,000 jobs in power business revamp

reuters.com

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Re: General Electric to cut 12,000 jobs in power business revamp

#31

Post by TheAdamAndChe »

stephen_g wrote: post #29
maxxxxx wrote: post #11

Earlier quoted context omitted.

I don't understand how anyone thinks the tax cuts will have an impact on hiring or wages. Companies are already making record profits so if they had a need for hiring people they could afford it already. They also could afford to increase wages now if they saw a need. The tax cut money will probably go into stock buybacks or dividends.

Yes, to think that tax cuts would increase employment, you would need to first believe that companies hire people they don’t need for fun. In reality, they will hire if increased demand for their goods or services requires more people to produce them.

The idea is that greater money saved would lead to more money being invested, allowing for continual exponential growth of the company and thus increased employment.

Obviously it hasn't worked out well. Most large-cap corps have more cash than they need for investment, they just are holding onto it.

Re: General Electric to cut 12,000 jobs in power business revamp

#32

Post by kevin_thibedeau »

maxxxxx wrote: post #13
munk-a wrote: post #10

Earlier quoted context omitted.

Sorry yes, to clarify they have not yet been signed but... passing the senate was the hurdle that I expected them to have the most issue with. At this point the GOP's image would be seriously damaged if negotiation on the particulars of reconciling the bill fell through.

I am sure they will at minimum agree on a tax cut for high incomes, eliminate the estate tax and deal another blow to Obamacare. That would mean all policy goals have been achieved. 100% success.

Still waiting on the H1B reform.

Re: General Electric to cut 12,000 jobs in power business revamp

#33

Post by jfnixon »

sharpercoder wrote: post #16

Something has gone very wrong at the GE board. They invested $10B+ in 2015 in the power business, which they now axe. They just took over Baker Hughes (last June), which they now want to get rid of.

Baker Hughes is in the oil services business, a separate GE business unit from Power.

Re: General Electric to cut 12,000 jobs in power business revamp

#34

Post by brandonmenc »

bluedino wrote: post #4

Wasn't GE running all kinds of commercials about jobs at the "new" GE, trying to hire millenials?

Those ads were for things like Digital and Aerospace - not Power, or Capital, or Transportation (which is located in my hometown, and will probably shut down in the next decade.)

Re: General Electric to cut 12,000 jobs in power business revamp

#35

Post by MaysonL »

revelation wrote: post #24
sharpercoder wrote: post #16

Something has gone very wrong at the GE board. They invested $10B+ in 2015 in the power business, which they now axe. They just took over Baker Hughes (last June), which they now want to get rid of.

It's the power business, where every purchase is planned 30 years in advance. To cut 12000 jobs there is just gross mismanagement.

Was any of the solar and wind power currently being installed planned even 10 years ago? I doubt it: fossil and nuclear installations planned have been going down for quite a while.

Re: General Electric to cut 12,000 jobs in power business revamp

#36

Post by PoachedSausage »

MaysonL wrote: post #35
revelation wrote: post #24

Earlier quoted context omitted.

It's the power business, where every purchase is planned 30 years in advance. To cut 12000 jobs there is just gross mismanagement.

Was any of the solar and wind power currently being installed planned even 10 years ago? I doubt it: fossil and nuclear installations planned have been going down for quite a while.

One of the UK sites that may shut in Stafford makes giant power grid transformers, you order those well in advance. I don't see how renewables are to blame, offshore wind still needs a grid connection and large substation transformers.

Re: General Electric to cut 12,000 jobs in power business revamp

#37

Post by nielsbot »

beckler wrote: post #28
chroem- wrote: post #12

Earlier quoted context omitted.

Because renewables, like wind and solar, and thermal power generation are completely different technologies. There is very little in the way of transferrable knowledge and manufacturing tooling between the two.

Also the margins on renewables are quite thin due to competition and recent innovation in that space.

...Leading to thin margins on non-renewables (hence the layoffs?)

Re: General Electric to cut 12,000 jobs in power business revamp

#40

Post by pascalxus »

cleansy wrote: post #25
pascalxus wrote: post #23

Earlier quoted context omitted.

>>Competitors from other countries. And China has another huge advantage: NO income taxes. This means they can pay much lower wages. This advantage becomes multiplicative because those companies and employees can then buy from others in their country who don't pay income taxes either, so every dollar spent goes further, at least in their country.

Do you have a source for no income taxes? The sources I found state clearly that they have one. [1] [1]: https://www.ecovis.com/focus-china/individual-income-tax-iit...

My wife lived in China all her life and worked there for many years. She's never heard of an income tax there. she worked at big companies like Nike and big advertising companies.

They do have some huge Sales taxes on luxury goods, sometimes 100% to 200% of the value of the good: especially luxury cars.

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