UP TO 11,000 JOBS MAY GO AT GE CAPITAL

By PAUL THARP

Jeff Immelt is swinging the sharpest ax of his career at General Electric and may cut as many as 11,000 workers from the payroll at the conglomerate's finance arm.

The average paycheck for the disappearing jobs at GE Capital is $175,000 and is part of Immelt's mission to slash expenses at the division by $2 billion in 2009.

GE Capital had enjoyed a long, profitable run as one of the world's most far-reaching financial firms, involved in everything from bankrolling jet airline fleets and life-saving medical gear to institutional financial services and products.

But the global meltdown of finance prompted Immelt to shrink GE Capital. It had once contributed half the parent company's profits, but the goal is now to have its contribution reduced to just 40 percent.

Layoff notices went out this week to an undisclosed number of the targeted workers on GE Capital's 75,000 total payroll, people familiar with the plans told Bloomberg News. The layoffs may affect 7,500 to 11,000 employees.

GE declined to give specific numbers on the layoffs, but reiterated that the job cuts are part of the $2 billion cost-cutting plan at GE Capital, announced in November.

GE shares had been down by 24 percent at midday but rallied to $13.96, closing 19 cents higher, up 1.4 percent. Shares have lost 57 percent of their value in the past year.

Banks and other financial companies have fired more than 250,000 employees worldwide since Wall Street's implosion and the credit crisis.

GE reports 2008 earnings next Friday.

GE said in November it would restructure the finance arm and focus on three regional centers in Europe, Asia and the Americas and eliminate its lower-returning businesses.