GE to layoff workers at Erie

[Lyon_Wonder]

First EMD, and now GE’s locomotive division is going to layoff workers too. I’m surprised that GE is going to layoff workers at Erie, considering they’re doing better with loco orders than EMD.

GE warns of layoffs

"The company has a backlog of 1,500 locomotive orders, but in a reflection of the slowing global economy, many customers don't want their orders filled immediately, he said".

"The slowdown at GE Transportation is hardly an isolated case. The Association of American Railroads reported recently that nationwide rail traffic was down 8.2 percent in the fourth quarter.

In addition, the London Free Press of Ontario, Canada, reported Friday that Electro-Motive Diesel -- GE Transportation's main competitor in the North American locomotive business -- is expected to announce layoffs of 350 to 400 workers, despite a recent order for 40 new locomotives."

[al-in-chgo]

It's an unfortunate thing, but there seem to be a lot of layoffs in this down economy, in manufacturing and financial services especially.  The number let go at GE, that I heard quoted on TV, was 1,300, but this is certainly for the whole country if not for the whole world. 

 

[beaulieu]

 A big Chunk of GE's orders are kits to be completed Overseas. They have an order from BNSF for 322 ES44DCs and an order from UP for ES44ACs, but their US production will be about half of last years orders, exclusive of the export production.

[MJChittick]

See the following from Trains News Wire:

GE to lay off 230 at Erie, Pa., locomotive plant

Published: Friday, January 16, 2009

ERIE, Pa. - A lack of orders for new locomotives has led GE Transportation to put 230 workers out of work through March, the Associated Press has reported. The company expects the employees to return to work at the end of March, but that's not yet certain. Most of the affected workers have agreed to take unpaid leave starting Monday. They'll be eligible for unemployment benefits. GE is the leading manufacturer of diesel locomotives for the U.S. and Canadian markets. It's also Erie County's largest employer, with 5,600 workers on its payroll

[BaltACD]

In economic times like the present, even companies that are in 'good' shape will use the excuse of the times to trim their work force....justified or not. 

Misery loves company and in these times even those who are not experiencing true economic misery will jump on the misery bandwagon, as demonstrating prosperity makes such companies a target for all those that are going down the drain.

[al-in-chgo]

BaltACD

In economic times like the present, even companies that are in 'good' shape will use the excuse of the times to trim their work force....justified or not. 

Misery loves company and in these times even those who are not experiencing true economic misery will jump on the misery bandwagon, as demonstrating prosperity makes such companies a target for all those that are going down the drain.

I don't think GE has a lot of choice in this.  Their stock is worth about 35% of what it was a year ago and their financial services sector, which is a much larger component of the company than manufacturing, has plummeted (along with most other financial services companies).  Besides, locomotives are built after the buying RR commissions them.  They're not churned out and set out for just anyone to buy, like new cars on a lot.  Those employees will be put back to work building motive power as soon as the railroads start buying new stuff again.  -  a.s.