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GE’s Flannery Signals Sweeping Makeover to Reverse Stock Drop

  • Company names Trian’s Garden to board amid management overhaul
  • Dividend cut to free up cash is a possibility, analysts say
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GE Adds Trian CIO Garden to Board in Win for Peltz

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General Electric Co.’s new boss has barely uttered a word in public during his first two months on the job. But Chief Executive Officer John Flannery is already signaling his intention to forge one of the most sweeping makeovers in the company’s 125-year history.

The beleaguered manufacturer added an activist shareholder to the board Monday, three days after announcing the exit of a trio of senior executives. Flannery is weighing changes to a portfolio that includes jet engines, locomotives and gas turbines. He also is cutting corporate jets and cars as part of a plan to trim $2 billion in costs by the end of 2018.