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The Crisis at GE

November 14, 2017
1452 Views

One of the biggest U.S. industrial conglomerate hits rock bottom after their shares hit five-year low and will now turn into a smaller company.

“GE shares fell to their lowest level in more than five years as investors worried the years-long overhaul would not pare down enough expenses or generate as much cash as they hoped. They closed off the day’s lows, down 7.2 percent to $19.02.”

The company will take big steps in recovering the business. The board of directors will be reduced from 18 to 12 and will add 3 new directors. GE also cut off 25 percent of their staff and reduce the investment on the digital unit to $1.1 billion in 2018 from $1.5 billion in 2017.

The crisis GE is facing right now is a very huge challenge for the 125-year-old company. GE has been serving the world with a large number of their industries and have been part of the lives of more than half of the world’s population.

Read more on Yahoo Finance.

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