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GE cutting jobs
Plans to cut up to 10% of aircraft engine unit staff unless jet demand rebounds.
October 9, 2002: 9:35 AM EDT

NEW YORK (CNN/Money) - General Electric Co.'s aircraft engine unit expects to cut 8 percent to 10 percent of its staff by the end of next year unless the market for commercial aircraft improves.

GE spokesman Rick Kennedy said Wednesday the division expects to cut 1,000 of 26,585 jobs by the end of this year. He said it would cut another 1,200 to 1,800 jobs in 2003, "if current conditions in the commercial aviation business continue."

Kennedy said the cuts would include both salaried and hourly staff and would be accomplished through a combination of retirements and layoffs.

Demand for new aircraft fell sharply in the wake of the Sept. 11 terrorist attack. The major U.S. airlines say they're not seeing the expected improvement in air travel this year, and have announced plans to cut capacity this year and next. Boeing Co., the world's largest commercial aircraft manufacturer, also said last week it sees a slower-than-expected recovery in the market for new planes.

The aircraft engine unit had 2001 revenue of $11.4 billion, about 9 percent of the company's total, and an operating profit of $2.6 billion.

Shares of GE (GE: Research, Estimates), a component of the Dow Jones industrial average, gained 40 cents to close Tuesday at $23.35.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.