GE said it would cut the dividend to 12 cents per share from 24 cents, starting in December. This is the third time the company has cut its dividend in its 125-year history. The other two dividend cuts were during the Great Depression and the 2009 financial crisis.
The move, widely expected after GE's cash flow deteriorated this year, is expected to save about $4 billion in cash annually.
"We are focused on driving total shareholder return and believe this is the right decision to align our dividend payout to cash flow generation," Flannery said in a statement.
Flannery plans to disclose a roadmap for the company on Monday that will focus on three of its biggest business lines - aviation, power and healthcare, the Wall Street Journal reported earlier in the day, citing a person familiar with the matter.
The report also says the plan stops short of a breakup or more radical restructuring of the company, but Flannery will look to exit most of its other operations.