General Electric has slashed its quarterly dividend for only the second time since the Great Depression, as new CEO John Flannery, on the job since August, tries to reshape the 125-year-old conglomerate.
Published| Photo by Reuters/Stephane Mahe
GE expects to save $4 billion a year by reducing its payout from 24 cents to 12 cents per share. The last cut was during the financial crisis.
Flannery also announced a major restructuring. Current businesses include lighting, software, and banking, but he wants to focus on three business units: energy, healthcare, and aviation.
Flannery has his work cut out: he called GE’s disappointing third quarter results “horrible.”