It seems new leadership means big changes at General Electric. John Flannery, G.E.’s new executive has taken over the reins and is planning major changes to help the industrial giant recover. Flannery has held the position for less than 3 months and he is already planning on cutting businesses by $ 20 Billion in the next couple of years. News of these big changes came when G.E. reported substandard profits during the 3rd quarter of 2017. Flannery has already stated that 2017 was going to be a difficult year, but also said that 2018 will be a reset year for the company.
Flannery grounded the corporate jets, slashed the company car program, and cut spending at G.E.’s headquarters in Boston. The plan is to cut expenses by $ 2 billion next year, and Flannery is prepared to sell off $ 20 Billion of businesses to reach that goal. Flannery would prefer to focus on profitable businesses rather than hold on to too many of them. However, it is not just cost cutting that is happening at general electric. Top executives have already announced their departures. The entire management team of G.E.’s power generation department has been replaced, one of two departments that have been dragging down the performance of the company. The other was oil and gas department of G.E. and changes are surely coming for that department too. Although these are very big changes coming to the nation’s largest industrial company, with a market value of $ 200 Billion, they are definitely necessary. Flannery is changing the way G.E. does business to ensure its future success. If your business is struggling, do as Flannery has done and change the way your business operates so that you too can be on track to future profits.