GE Capital has pink slipped hundreds of employees yesterday, according to a person familiar with the matter. The actual number of job cuts is unclear but may be in the thousands. There are rumours that GE Capital may reduce its work force by as much as 30%.
GE did not respond to our request for comment
Huge cuts at GE Capital are probably inevitable. The once booming unit of General Electric has become a drag on earnings and dramatically scaled back it’s business. It was one of the world’s largest lenders to bankrupt or near bankrupt firms, providing both debtor-in-possession and exit financing loans, but recently said it would largely halt that business. They’ve also removed themselves from the auto finance business. Inventory financing? Also halted.
You can’t keep shutting down business operations without making serious job cuts.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.