Report: GE lays off workers in Waukesha

Jun 22, 2008

GE Healthcare on Friday laid off a number of workers at its Waukesha, WI, operation.

GE spokesman Brian McKaig declined to provide a specific number of layoffs, only saying that the total is fewer than 400 people.

"This has been an extremely tough year for GE Healthcare's diagnostic imaging business," McKaig said. "There are a number of factors contributing to this, including the federal Deficit Reduction Act, which drastically lowers the amount our customers are reimbursed for diagnostic imaging procedures."

Governments, insurance companies, and state legislatures "are taking a number of actions aimed at reducing the amount spent on imaging," added McKaig. "This directly impacts our customers economically, limiting their ability to reinvest in clinically relevant technology, which has a tremendous impact on patient care and on our business."

For the first quarter of 2008 (end-March 31), revenues for the Chalfont St. Giles, U.K.-based healthcare division dipped to $3.88 billion, compared with $3.89 billion in the first quarter of 2007. Profit decreased to $528 million, compared with $637 million in the same quarter a year ago.

GE Healthcare will provide its outgoing employees with outplacement services, such as résumé assistance, interview training, and initiating contact with prospective employers, the company said.

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