Here Comes GE’s Turnaround Plan. It Better Be Good

For much of the past century, General Electric Co.—whose history stretches back to Thomas Edison’s lightbulb—had been a symbol of the by-the-numbers management credo that ruled American business before the digital age. But GE’s eyesore of an earnings report on Oct. 20 leaves little doubt that the 125-year-old company, with a market value of $186 billion, is facing a financial and cultural senior moment.

This icon of American industry has been forced to cut its earnings and cash flow outlook so drastically that investors are now preparing for a once-unthinkable cut to its dividend. A rapid-fire series of high-level departures over the past few months, beginning with longtime Chief Executive Officer Jeff Immelt, represents a jarring transition for the company. There’s even speculation that GE, the only member of the original Dow Jones industrial average still on the benchmark, could get dropped from the list.