GE Equity cuts staff as downturn bites

GE Equity, the private equity arm of GE Capital, is making a third of its investment executives redundant and closing its San Francisco office amid a sharp industry downturn.

The move is thought to follow a dramatic decline in new investment this year at GE Equity. Investment levels are said to have fallen by as much as 90%, according to someone familiar with the situation.

The operation, which is though to have invested more than $1bn (€1.11bn) last year, is expected to make a loss in 2001.

GE does not reveal performance at the division. It declined to comment, except to confirm that 40 jobs had been cut, 10 of which were support staff.