At GE, Neutron Jack Is Back

As GE's John F. Welch Jr. heads for retirement, his legacy as Neutron Jack continues. Back in 1981, a 45-year-old Welch settled into his new job as chief executive of General Electric Co. by promptly dismantling many of GE's old-line businesses and hacking away layers of bureaucracy in the big conglomerate. After four years, he had managed to cut some 100,000 jobs, a feat that set GE on its now-legendary course of growth and ever-increasing profits -- and one that earned Welch his infamous nickname of Neutron Jack. Now, at 65 as he's supposed to be winding down his career, it looks as if Neutron Jack is roaring back.

Wall Street sources and people close to the company tell BusinessWeek that GE is planning massive job cuts on a scale not seen since the early days of Welch's tenure. GE may take out at least 75,000 jobs in the next two years --or more than 15% of the 450,000 people it'll employ once the Honeywell International merger is completed. Excluded from the estimates are the 28,000 jobs that will go as a result of GE's decision to shut retailer Montgomery Ward & Co.