General Electric Co. (GE) has grounded its fleet of corporate jets in a move to slash unnecessary costs under new CEO John Flannery, Fox Business reported.
The industrial company is keeping some helicopters and aircrafts overseas, but will largely rely on charter planes to get its executives to and fro. Government records show GE had at least two Bombardier Challenger planes with pilots who logged hundreds of hours each year. Executives had been required to use the corporate fleet, even for personal travel, as a means of security and safety.
Flannery has prioritized cutting costs, especially in corporate operations, since he took over at the start of August. This move is part of a plan to cut $2 billion in costs by the end of 2018 to combat sales that have come under pressure in recent months.
Flannery will reportedly delineate a plan for boosting results in November. Since Flannery took the helm, GE stock has fallen 5% while the S&P 500 Index has gained just over 1% during the same period. Shares of GE traded up 0.5% to $24.32 late Wednesday afternoon.
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