The ever iconic American business General Electric is facing some very difficult headwinds. They have had to deal with the fact that they have made poor investment decision after poor decision. Now, they are struggling to survive in markets that they once dominated.
The word is now out via financialexpress.com that GE is preparing to once again split up segments of its business into smaller parts. When they do this, they are hoping that it will help to clear up some of the mistakes that they have made in the past. At the very least, they would like to eliminate some of the excess that currently exists in the company.
Investors in GE are preparing to see a cut in the dividends that they typically receive from the company. The reason for this being that the company only has seven billion in free cash flow, but they are facing having to pay out eight billion in dividends. That is not something that they can afford to do, so even their loyal shareholders are preparing for some pain to come their way with this one.
Experts are saying that General Electric needs to do everything that it can to clear up the mess that it has made in terms of investor confidence. There is no question that they currently do not have the confidence of those investors, and those who follow the stock say that they need to do everything that they can to clear up these issues as fast as possible.
There are closing and cuts coming through all segments of the company. The reality is that the company is not holding up any particular segment of its business as something that cannot be eliminated. Other expected cuts are on their way. Many predict that cuts in research and development centers are what are about to come next.
The company has largely remained quiet about how things are going, but they have revealed that it is very obvious to them that they have to tighten their belts. There is no getting around this fact, and they want to do everything necessary to help right the ship and start making progress in the direction that they need to. They have made mention of this to none other than CNBC. Those who currently work for the company ought to be concerned about what is going on. The same can be said for those who hold shares in the company.