>> Ahead of Monday's all important reveal by General Electric CEO John Flannery on how he plans to bring GE back to life, Reuters learning of pink slips being delivered to employees. Sources revealing the layoffs to Reuters correspondent Al Scott.>> They are cutting their staff, particularly in their digital division.
They're laying off salespeople which are the ones that would try to get this software that they've been working on out into the industrial world and they can't do that very well without the salespeople. So it's kind of a pretty major retrenchment of their digital strategy.>> And there's more where that came from.
Flannery is expected to reduce GE's 300,000 headcount and ditch unsuccessful pet projects of his predecessor Jeff Immelt, as he tries to pry GE's stock out of a 16 year slump. Monday will be his first chance to deliver a clear message for the 125 year old conglomerate, after landing the top job this summer.
>> The company has failed to produce the profits and cash flow that investors were looking for. Flannery's been reviewing this company since August and has devised a plan. What he's expected to do is talk about what they're going to divest. Their business is $20 billion or more worth of businesses that they're going to get rid of.
They're probably going to announce a dividend cut. That's widely expected as a way to save $8 billion in spending.>> But a GE revival can't be built on spending cuts alone. Flannery expected to throw muscle behind segments where GE is a market leader like power plants, jet engines, and medical devices.
Anything short of a transformational plan could be disastrous for a stock already down 36% for the year, and at risk of being pushed out as the last surviving original member of the DOW.