GE is splitting into three companies

[hist78]

It's a sad moment.

A great company was destroyed by its own CEOs and board of directors.

GE is splitting into three companies

General Electric, the industrial conglomerate founded by Thomas Edison in 1892, is breaking up. GE announced plans Tuesday to split into three separate companies.

www.cnn.com

 

[Daniel Nenni]

"By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors and employees," said CEO Larry Culp in a press release.

Translation: Management is incompetent.

 

[count]

This is what always happens when you let MBAs run a technology/engineering company.

 

[VCT]

Toshiba too. lol

Toshiba to split into 3 companies by 2023

New entities to list separately to maximize shareholder returns and profit

asia.nikkei.com

 

[hist78]

"By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors and employees," said CEO Larry Culp in a press release.

Translation: Management is incompetent.

During a recent speech (see below for the link), Dr. Morris Chang recalled the first CEO of TSMC used to be President of GE Semiconductor division. But Jack Welch, GE's CEO at that time, demanded GE Semiconductor to become number one or two in the industry in five years. That's an unrealistic goal and that person was forced to leave and later joined TSMC. Morris said basically that person was asked to climb Mount Everest for an impossible mission set by Jack Welch.

Morris told the audience that he had a chance to know Jack Welch personally after he retired from GE. Jack told Morris that was a mistake he made on the GE Semiconductor. Does anyone know who is that person Morris was talking about?

We can't rewrite the history but we can definitely learn something form it.

Starting around 1:07:00

Morris Chang speech Oct 26 2021

The speech was about how Morris Chang grow and learn. But there was a Q&A in the end. I will summarize Q &A　and update late．． 1. He knows every Intel CEO including Pat. Pat visited Morris in Taiwan in 2015. Morris was impressed that Pat can explain what VMware is very clear in 15 mins. In...

semiwiki.com

 

[Xebec]

FWIW - GE has been shedding companies and effectively splitting for decades. Lockheed Martin, for example, wouldn't exist without GE Aerospace's sale in 1993. That sale included 37,500 employees and was sold for $3B ($5.7B in today's dollars). While the $5.7B is small vs. todays market capitalization, 37,500 employees is equivalent to about 20% of GE's size today.

IMO, Companies that advertise 100+years of history are generally doomed to mediocre management over time.

 

[count]

During a recent speech (see below for the link), Dr. Morris Chang recalled the first CEO of TSMC used to be President of GE Semiconductor division. But Jack Welch, GE's CEO at that time, demanded GE Semiconductor to become number one or two in the industry in five years. That's an unrealistic goal and that person was forced to leave and later joined TSMC. Morris said basically that person was asked to climb Mount Everest for an impossible mission set by Jack Welch.

Morris told the audience that he had a chance to know Jack Welch personally after he retired from GE. Jack told Morris that was a mistake he made on the GE Semiconductor. Does anyone know who is that person Morris was talking about?

We can't rewrite the history but we can definitely learn something form it.

Starting around 1:07:00

Morris Chang speech Oct 26 2021

The speech was about how Morris Chang grow and learn. But there was a Q&A in the end. I will summarize Q &A　and update late．． 1. He knows every Intel CEO including Pat. Pat visited Morris in Taiwan in 2015. Morris was impressed that Pat can explain what VMware is very clear in 15 mins. In...

semiwiki.com

This is typical of Jack Welch...

You must be number 1 or 2 in every industry, or it's not worth being in the business, and it's true that in the long term only the #1 and #2 company can really be successful, but to do it in 5 years starting from nothing is impossible.

 

[VCT]

Are you sure Vishay General Semiconductor is owned by GE?

 

[hist78]

Are you sure Vishay General Semiconductor is owned by GE?

We're talking about GE's Semiconductor division. TSMC's first CEO James E. Dykes was from GE Semiconductor.

Taiwan Semiconductor Outlook May 1988 - Semiwiki

This is an interesting piece of TSMC history. From 1987 to 1988 James E. Dykes served as the first President and Chief Executive Officer of Taiwan Semiconductor Manufacturing Company Ltd. Taiwan Semiconductor Outlook by James E. Dykes President & Chief Executive Officer Taiwan Semiconductor...

semiwiki.com

James Dykes Obituary (2013) - McCoy, FL - St. Augustine Record

View James Ernest Dykes's obituary, send flowers and sign the guestbook.

www.legacy.com