GE Transportation to Cut 350 Jobs, Temporarily Lay Off 1,200 at Erie unit : Reports

General Electric Co. (GE: News ) reportedly has announced plans on Tuesday to permanently cut 350 jobs and temporarily layoff 1,200 workers at its locomotive unit, due to a decrease in production volumes.

The job cuts are said to affect nearly 14%, or 11,400 employees of Erie, Pennsylvania-based GE Transportation, with the permanent layoffs set to take place in April and temporary furloughs beginning in May. The temporary cuts are noted to be "lack-of-work furloughs."

GE Transportation said it expects locomotive production volume to decrease about 40% from last year, and most of its backlog is slated for 2010 and 2011, the reports quoted the head of the division Lorenzo Simonelli as saying.

Fairfield, Connecticut-based General Electric had recently reported a 44% decline in fourth quarter net income to $3.72 billion and a 5% decline in revenues to to $46.21 billion.

GE Transportation, a part of the GE Technology Infrastructure unit, contributed about $5 billion of the parent's $182.5 billion in sales last year.

GE is currently trading at $11.62 on the NYSE.