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GE Industrial and Power Systems Division to Cut 1,200 Jobs

August 30, 1994

SCHENECTADY, N.Y. (AP) _ General Electric Co. said Tuesday it will eliminate 1,200 jobs in its Industrial and Power Systems unit during the next nine months amid tough international competition.

The job cuts are necessary to keep the unit competitive, said David Genever-Watling, president and chief executive of the division. Industrial and Power Systems had record earnings in 1993, and Genever-Watling said he expected it would register double-digit earnings growth in 1994 and 1995.

The work force reductions - 400 salaried and 800 hourly employees - will be achieved through a combination of layoffs, voluntary separations and an early retirement program, GE said.

The company had no projection of how many job cuts would be made in each category, GE spokesman Len Doviak said. GE promised other, unspecified cost- reduction and efficiency improvements as well.

With 1,000 of the cuts planned for Schenectady, the head of Local 301 of the International Union of Electrical, Radio and Machine Workers threatened a protest.

″Some type of action will be taken, some sort of strike,″ said Bob DeCerce, president of the local, which represents 4,000 GE workers.

The company, which was formed in Schenectady, employed more than 40,000 people here during World War II. GE currently employs about 9,000 workers in Schenectady. Previously announced job cuts will reduce the work force to 8,600 in October.

Genever-Watling said some of the details of the cuts among hourly employees are subject to negotiations between GE and the workers’ unions.

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