GE to freeze, pre-pay pensions to save up to $8 billion

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GE to freeze, pre-pay pensions to save up to $8 billion

On Monday, the 7th of October 2019, the Boston, Massachusetts-based American multinational conglomerate, General Electric told that the company’s management board had agreed to freeze pension for roughly 20,000 full-time US employees alongside other austerity measures in a bid to trim its rapidly growing debt-pile.

Aside from that, the debt-laden US-based multinational conglomerates engaged in a swath of critical sectors ranging from healthcare to aviation to capital management and a many more, General Electric had said in its Monday’s (October 7th) statement that the company had been sketching out a plan to deduce its retirement fund deficit by up to $8 billion adding the pension freeze would take effect from January 1st 2021.

Further inside the bid, following GE’s Monday’s (October 7th) statement, several industry analysts had been quoted saying that the latest GE move would likely to moderate a quicker rise of its pension obligations amid lower interest rates adding that the latest measures were in alignment with GE Chief Executive Larry Culp’s target to raise cash and downsize the conglomerate’s $105.8 billion debt-pile.

In point of fact, GE Chief Culp had been rolling out wide-ranging austerity measures including a slash on GE’s quarterly dividend and a broad-based reform to slim down the company by spinning off and selling off some of its non-core businesses to focus more on to its power and utility business, windmills and jet engines after taking office later last year, while heaping praises on Culp’s leadership, an analyst of William Blair & Co., Nicholas Heymann said late on Monday (October 7th), “The impact is being offset now, rather being reduced.

So it is possible that investors are not cheering. Culp is setting up (GE for) much better performance next year. ”