Business

Former GE CEO Resigns From Fortune Following Intense Criticism of His Jobs Report Theory

Legendary businessman, former General Electric CEO, and Bureau of Labor Statistics data skeptic Jack Welch on Tuesday terminated his contribution agreements with both Thomson Reuters and the market-related outlet Fortune following intense criticism he received for questioning last week’s jobs report.

“Welch said he will no longer contribute to Fortune following critical coverage of the former CEO of General Electric, saying he would get better ‘traction’ elsewhere,” writes Fortune senior editor Stephen Gandel.

You might recall the tweet that caused Welch to be labeled a BLS “truther“:

Not long after that, the former GE CEO was met with criticism and support from both sides.

“I agree with former GE CEO Jack Welch, Chicago style politics is at work here,” Rep. Allen West (R-Fla.) said on his Facebook page. “Somehow by manipulation of data we are all of a sudden below 8 percent unemployment, a month from the presidential election.”

And former Speaker of the House Newt Gingrich seemed to throw his support behind Welch:

It rings true at a deeper level, without getting into the conspiracy of it. What’s interesting is you have a president who after four years — and by the way his last budget got zero votes in the U.S. Senate, not a single Democrat voted for his last budget.

But then you had the other side of the debate.

“I think it’s exactly the opposite of what Jack Welch is saying,” said Fortune managing editor Andy Serwer during a Monday broadcast of MSNBC’s “Morning Joe.” “Things are actually improving.

Meanwhile, POLITICO dismissed Welch’s tweet as nothing more than “trutherism” and Fortune.com published a story detailing “Welch’s record as a job destroyer,” Gandel notes, adding that GE lost nearly 100,000 jobs while Welch was in in control.

“I never put myself out there as an employment agency,” Welch told Fortune.

Many speculate Welch decided to sever ties with Reuters and Fortune because of the negative coverage:

Following the story, Welch sent an e-mail to Reuters’ Steve Adler and Serwer saying that he and his wife Suzy, who have jointly written for Reuters and Fortune in the past, were “terminating our contract” and will no longer be sending our “material to Fortune.”

Reuters’ story about Welch’s tweet quoted money manager and blogger Barry Ritholtz, who said Welch’s comments were laughable. Reuters wrote that Ritholtz comments were referring to allegations that Welch regularly manipulated GE’s earnings during his tenure as CEO in order to best Wall Street profit estimates.

Fortune tried to contact Welch to find out if the resignation was related to our reporting of his tweet, but Welch didn’t return our phone call.

Here’s a copy of his letter of resignation:

Welch

Follow Becket Adams (@BecketAdams) on Twitter

RELATED:

Front page photo courtesy the AP. This story has been updated.

Benghazi, IRS, AP...What's next? Only TheBlaze TV offers the truth from Glenn Beck, Andrew Wilkow, and Real News from TheBlaze. Get instant access and a free trial here.

Comments (113)

  • thegreatcarnac
    Posted on October 9, 2012 at 3:32pm

    Welch is correct. Chicago style percentages are different from real world percentages. They are made-up.

    Report this comment

    thegreatcarnac  
    • encinom
      Posted on October 9, 2012 at 5:04pm

      Welch is going senile, he admits he has ZERO evidence for his outlandish claim.

      Report this comment

      encinom  
    • roostercogburn
      Posted on October 9, 2012 at 5:38pm

      Jack was right on the money, there is NO WAY those numbers could be right, we are still loosing thousands of jobs every month, nothing has changed, so how on earth is it possible for those numbers to change so much unless they were “fixed”.
      I just hope the bottom doesn’t fall out of the Obama mess too soon, give Romney a chance to actually do something to turn things around, with any hope we can put on the brakes and not go off the cliff.

      I herd Obama finally say today that the bump in the road they felt was the limo driving over the middle class..

      Report this comment

      roostercogburn  
    • John_Free
      Posted on October 9, 2012 at 5:54pm

      @ encinom

      I have an MBA/PhD and I think Welch is correct…..My thesis was about his management of GE…a remarkable guy.

      I think that its naive at best to think that our government is “straight” with us…especially when the head of BLS is an Obama appointee.

      Report this comment

      John_Free  
    • fraumj
      Posted on October 9, 2012 at 6:00pm

      I’m with Welch. Clearly the numbers don’t jive. What needs to be done is to show exactly how the 7.8% was computed versus other past numbers. The numbers may not have been changed, but the method of computing it or method of getting the data changed, without explaining that. It’s like comparing apples to oranges. That’s just as deceptive as adjusting actual numbers.

      Report this comment

      fraumj  
    • jaylew
      Posted on October 9, 2012 at 6:17pm

      @Encinom….you would not know evidence if it stared you in the face…..while you are hanging out on the edge of the apartment complex’s swimming pool……diddling your favorite welfare recipient in exchange for each of your addictive habits……you may think that the twitching of your hindquarters resembles an orgasmic moment in heavenly blissful cinematography….but the rest of us know full well…that it was just a fire ant that bit you on the a$$. Your twitching in that way fools no one. Now give the girl her 35 dollars and you go home with a red round welt from the ant bite. She’ll be back next welfare check cycle…..and you’ll bring a wisk broom to get the biggest of the biggest of the fire ants whisked aside for the 30 seconds that it takes.

      Report this comment

      jaylew  
    • db321
      Posted on October 9, 2012 at 6:51pm

      I watched the interview on the Blaze with Jack Welch. I conclude that Obama was mad and I was Glad!

      Report this comment

      db321  
    • RabidPatriot
      Posted on October 9, 2012 at 6:55pm

      Just like the rate magically went down before the election it will go back up in November. The same thing happened in 2010 before that election. In November it went back up to 9.8 from the October BS # of 9.5. It was 9.9 in April of 2010.

      Report this comment

      RabidPatriot  
    • mtcountrygrl
      Posted on October 9, 2012 at 7:00pm

      @Encino
      The White House does not control MSNBC yet they have doctored video to help him by making Romney look bad. The numbers don’t add up. The White House may not have directly done it, but SOMEONE is fudging the numbers to make him look better.

      Report this comment

      mtcountrygrl  
    • mtcountrygrl
      Posted on October 9, 2012 at 7:01pm

      Anyone else notice the subject line on the email says “going forward”.

      Report this comment

      mtcountrygrl  
    • turkey13
      Posted on October 9, 2012 at 7:15pm

      I called Hastings today and got in touch with the MGR and told him today he could reduce his order for Fortune maqazine. I would not be buying it anymore to put on the office table for customers. They shouls read their own articles on unemployment and small business’s.

      Report this comment

      turkey13  
    • pissantno.10
      Posted on October 9, 2012 at 7:34pm

      how cool you are such a SUPER GENUIS encno wow. way cool coment just took it too him

      Report this comment

      pissantno.10  
    • LakeHartwellSailor
      Posted on October 9, 2012 at 7:37pm

      Oh mercy….. I know that the BLS is suppose to be neutral to party; but the bottom line is the board are made up of humans, and humans have a tendency to further their cause. The head is appointed by Obama; and he has contributed to his campaign. The timing is “curious” that such a dramatic drop is being reported in the U3 rate; counts “part-time work” (which includes the under-employed) and ignores those who left the labor pool by just “giving up” looking for work; but are still able bodied. Incidently, with all the Obama “give-aways” going on, is it any wonder that able-bodied people just give up and leave the labor force even though they can work? The real number is the U6 Rate, which takes into account these factors.

      So yes, I think these numbers are suspect and I think it reflects the Admin is deliberately lying to us. Couple this with the lying over the Libyian Consulate Attack, the Fast & Furious stonewalling, the interference in the WARN Act, Voter ID Requirements, making it difficult for Armed Service Members to vote….and on and on.

      Yeah….I smell an odor.

      Report this comment

      LakeHartwellSailor  
    • Walkabout
      Posted on October 9, 2012 at 8:12pm

      You can rely when you report one number like the unemployement number U3. It is much harder to lie when you consider the whole picutre such as the number adults under the age of 67, the U6 #, the labor force participation rate & the total # of estimated jobs.

      Your lies are so outrageous, I do not think you would be welcomed at the Huffpo any longer.

      Report this comment

      Walkabout  
    • kenboo1
      Posted on October 9, 2012 at 8:40pm

      @Encinom – damn son stand up and defend yourself… Your getting your but kicked…

      Report this comment

      kenboo1  
    • Cemoto78
      Posted on October 9, 2012 at 10:41pm

      Jack Welch, stand up guy who isn’t afraid to call a spade a spade. There’s some big corruption going on in this government and they need to be called out as much as possible and as loud as possible. This should be a lesson for everyone, it’s time to draw that line in the sand and demand the truth from our so-called government officials and their cronies. The progressives are trying to enslave and destroy us.

      Report this comment

      Cemoto78  
    • Brettfan
      Posted on October 9, 2012 at 10:48pm

      As Jennifer Westhoven said on a business report, If you heard any conspiracy theories about the unemployment numbers know that they are completely wrong and off base. The people who come up with the number are good people who know what they are doing. These economists don’t lie. But what happened is people stopped looking for work or are working crappy jobs. If you counted them in the unemployment would be at least 12 to 15%. I don’t think the numbers were cooked, But I do think Obama sucks and his economy policies hurt the country.

      Report this comment

      Brettfan  
    • addie
      Posted on October 10, 2012 at 2:14am

      You want to see senile ENCINOM? Tune into the debates Thursday night and watch Biden! That will show you what senile looks and sounds like!

      Report this comment

      addie  
    • Gregory_Adams
      Posted on October 10, 2012 at 11:14am

      As I stated previously, California dropped a lot of unemployed off their rolls in the weeks leading up to the report, even people that were still qualified for benefits. It was actually a mistake, but it was large enough to affect the percentages. That is why they don’t make sense.

      Report this comment

      Gregory_Adams  
    • BORNINTOAWORLDATWAR
      Posted on October 11, 2012 at 2:05am

      Hey encinom

      I see your head has popped out again.
      Please replace it before you say something really s t u p id.
      Oops too late.

      WTF – Stupid should hurt

      Report this comment

      BORNINTOAWORLDATWAR  
  • VotersOfNY
    Posted on October 9, 2012 at 3:30pm

    If it looks like a duck, walks like a duck and talks like a duck, it’s an effing duck. Since when did Obama EVER tell the truth. He’s a proven LIAR.

    Report this comment

    VotersOfNY  
    • encinom
      Posted on October 9, 2012 at 5:05pm

      You wrote Obama, when its Romney the proven liar, you may want to correct your typos.

      Report this comment

      encinom  
    • jaylew
      Posted on October 9, 2012 at 5:34pm

      Oh Votersofny…now you have done it……you have p*ssed off my favorite b*tch Encinom. Look what you have done….now he is throwing around the word liar. It is so pleasing to watch the progressive bitter shrill liberals who live on this forum become completely unhinged as they sense the noose of their hangman’s gallows become completely frayed to the core……not only is the noose being rend asunder…but the gallows pole itself is being dismantled. Freaking hilarious……

      nan anan ananan anana naah …….Romney is a liar……just like a 3rd grade petulant little punk. the kind that invariably got punched in the face…generally in gym class….by the end of the 5th grade school year…..and instead of learning from the punch…they continued through life still being sad about getting whacked down when they deserved every foot pound of the punch.

      Report this comment

      jaylew  
    • girlnurse
      Posted on October 9, 2012 at 5:38pm

      ENCINOM: “The good guys always win”. Your boy will get waxed again…his tongue will be tied. His brain will show itself to be a head full of lyin mush…”cheaters NEVER prosper” You see there’s some value in those old rhymes our parents used to tell us.

      Report this comment

      girlnurse  
    • roostercogburn
      Posted on October 9, 2012 at 5:40pm

      It’s going to be fun watching Chris Mathews on election night, I bet most of those looney leftists will have to go to the funny farm for a while after Obama looses..

      Report this comment

      roostercogburn  
    • pissantno.10
      Posted on October 9, 2012 at 7:40pm

      enc just knows it wont be long and its free ride will be over . back to dummster diveing for a liveing

      Report this comment

      pissantno.10  
    • Fla.Patriot
      Posted on October 9, 2012 at 11:12pm

      God how I hope this comes up in the Ryan/Biden debate. Biden DOES NOT want to get into a numbers war with Ryan. Everyone knows, including the progressives (even if they won’t admit it) that these numbers are BS. 2 days before these numbers were released, virtually all of the analysts, both conservative and progressive, were estimating the numbers to come in at 8.2%. Apparently, there was a miraculous 2 day surge in job growth…is that what we’re supposed to believe? Encinom, thanks for keeping this sight lively. We depend on your carefully thought out and constucted ruminations to provide some levity. Don’t ever change, every village needs an idiot and you belong to us. Keep up the good work

      Report this comment

      Fla.Patriot  
  • BellaMia7
    Posted on October 9, 2012 at 3:27pm

    The country has now see that Obama has no clothes, and no intellect for numbers.

    Report this comment

    BellaMia7  
  • Busterman
    Posted on October 9, 2012 at 3:26pm

    Bravo Jack, don’t pay any attention to the little screaming memmes on MSNBC or Politico

    Report this comment

    Busterman  
  • CapitalismCzar
    Posted on October 9, 2012 at 3:25pm

    Brought to you by the same people who made up “Saved or created” Are you kidding me?

    Report this comment

    CapitalismCzar  
  • CapitalismCzar
    Posted on October 9, 2012 at 3:23pm

    Those employment numbers are bogus…they’ve been manipulating them for 4 years. Do they think we are stupid? Don’t resign dude…screw the fools.

    Report this comment

    CapitalismCzar  
  • Verceofreason
    Posted on October 9, 2012 at 3:18pm

    Conspiracy theories may fly here but shred your creds on Nation TV.
    Word up.
    Not a single shred of evidence to support his comments.
    He can always appear on FOX though.

    Report this comment

    Verceofreason  
    • CapitalismCzar
      Posted on October 9, 2012 at 3:24pm

      Oh and the left always has their facts when reading the democrat talking points? It’s not too late to straighten out your life.

      Report this comment

      CapitalismCzar  
    • thegreatcarnac
      Posted on October 9, 2012 at 3:30pm

      You are kidding, …aren’t you? Everyone knows that the true unemployment figures are somewhere around 12-14%. Obama’s Labor dept. numbers on unemployment were cooked so long the ink boiled away.

      Report this comment

      thegreatcarnac  
    • termyt
      Posted on October 9, 2012 at 3:31pm

      We added 110,000 jobs in September. Roughly the same as many months prior, but these 110,000 caused a dip in unemployment of 0.3? Anyone truly voicing reason could see the numbers don’t add up.

      However, it doesn’t mean the numbers are a scam. We could have had a record number of people drop off unemployment. Aren’t we about 3 years past the massive layoffs from the recession? Perhaps they are now all dropping off of the rolls in huge numbers. It’s not good news, but it could explain the drop.

      Report this comment

      termyt  
    • Leader1776
      Posted on October 9, 2012 at 4:24pm

      @VERCEOFREASON
      I agree with you 100% Let us both ask Webster to take ‘conspiracy’ out of the dictionary as they don’t really exist, do they. Wait ……… conspiracies exist only when the government deems there is a conspiracy by citizens. Please lecture us on where conspiracies originate. Thank you.

      Report this comment

      Leader1776  
  • drs1969
    Posted on October 9, 2012 at 3:10pm

    According to the BLS numbers, about twice as many people went on food Stamps last month as found jobs. 21 million in 4 years.
    Welcome to the School of the Blatantly Obvious, Mr. Outsourcer.

    Report this comment

    drs1969  
  • Anonymous T. Irrelevant
    Posted on October 9, 2012 at 3:10pm

    The brown-nosers can only taunt and name-call whenever someone critcizes their boy-king.

    Report this comment

    Anonymous T. Irrelevant  
  • diverdan
    Posted on October 9, 2012 at 3:09pm

    What, the Obama administration is not telling the truth. Who could have seen that coming. There are still a few good people willing to sound the alarm.

    Report this comment

    diverdan  
  • edie1945
    Posted on October 9, 2012 at 3:04pm

    Good boy, Jack. I thought something was the matter with the “numbers” as soon as I heard them. Just to many good Americans are unemployed, or and have stopped looking. A few weeks ago, some agency or what ever callled here, I would not give them any info. I work every Fri. 5-9, whew thats great right, If I would have told the caller, I would have been marked, employeed.

    Report this comment

    edie1945  
  • nappy
    Posted on October 9, 2012 at 2:58pm

    intense criticism.. from Joe Scarface on PSMNBC? Seriously.

    Well Welch was 100% correct. Truth hurts.

    Report this comment

    nappy  
  • phillycornerboy
    Posted on October 9, 2012 at 2:55pm

    let this serve as an example of what YOU need to DO about the problems facing this country…TAKE ACTION. MAKE something happen. it’s our APATHY that’s killing America.

    Report this comment

    phillycornerboy  
  • garbagecanlogic
    Posted on October 9, 2012 at 2:55pm

    Could it be that most of the critism was from the left?? Nah, that couldn’t be.

    Praise Be To Obama. Psalm 109:8

    The U.S. Out Of The U.N.
    The U.N. Out Of The U.S.

    Report this comment

    garbagecanlogic  
  • eaglesview
    Posted on October 9, 2012 at 2:54pm

    Anybody with half a logical thought process knows the books were cooked.
    It’s the uninformed that concern me.
    They lack critical thinking skills, yet retain the right to vote.

    Report this comment

    eaglesview  
    • jaylew
      Posted on October 9, 2012 at 6:10pm

      and they also retain the right to use their food stamp accounts to buy crab legs and shrimp and porterhouse steaks……how come Big Bird can’t teach food stamp recipients that hot house tomatoes in February are a bad value?…and that most of us fore go buying tomatoes in February because they are out of season. I can hardly wait to see the look on Food Stamp recipients faces when they can no longer buy chicken wings and pig ribs with food stamps because they are not a good value in terms of price versus amount of nutrient. No more crab legs…no more shrimp for food stamp recipients…… us taxpayers owe No ONE shrimp or crab legs. Let the madness end soon.

      Report this comment

      jaylew  
  • vbell
    Posted on October 9, 2012 at 2:53pm

    SAD when you have to resign for speaking your mind regarding liberal dishonesty (to put it politely)!

    Report this comment

    vbell  
    • drs1969
      Posted on October 9, 2012 at 3:12pm

      Don’t feel too sorry for Welch. He made his millions sending good paying jobs overseas.

      Report this comment

      drs1969  
    • Verceofreason
      Posted on October 9, 2012 at 3:19pm

      This is not about speaking your mind – if yer makin’ things up
      on what is a National NEWS program.

      Report this comment

      Verceofreason  
    • Just_Us2
      Posted on October 9, 2012 at 3:39pm

      In the liberal world saying 2 + 2 does not equal 27 is blasphemy. If I were laying down with those dogs I would terminate them as well…..after all, who wants to go down with the sinking Obama ship? Everyone knows the boy king has no clothes, no speaking ability without a teleprompter and is lazy.

      Report this comment

      Just_Us2  
  • thom1
    Posted on October 9, 2012 at 2:51pm

    In the lame stream press honesty will get you no where Mr. Welch. Keep hammering away at them, as they say the truth will set you free.

    Report this comment

    thom1  
  • progressiveslayer
    Posted on October 9, 2012 at 2:45pm

    Andy thinks things are improving? LMAO Yeah Andy things are improving if you’re a government employee parasite. Steve Forbes should fire Andy for his idiocy alone and Welch is correct about the numbers,everything’s rosy with the jobs numbers just before the election? Yeah your typical simpleton Obama voter will believe that BS line,of course that’s the target audience anyway.

    Report this comment

    progressiveslayer  
  • Oneirishman
    Posted on October 9, 2012 at 2:44pm

    Good for Jack. You can’t think independent thoughts and expect Liberals not to slander you.

    Report this comment

    Oneirishman  
  • Snowleopard {gallery of cat folks}
    Posted on October 9, 2012 at 2:43pm

    God grant him better fortunes for standing for the truth.

    Report this comment

    Snowleopard {gallery of cat folks}  
  • freenj
    Posted on October 9, 2012 at 2:42pm

    I’d believe Jack Welch before Barack Obama or any of 0′s people! Go Jack Welch!

    Report this comment

    freenj  
  • coyote1hell
    Posted on October 9, 2012 at 2:41pm

    Fortune, is a self serving, obama backing, pos of a rag. If you trust what they print…you will go Broke….

    Report this comment

    coyote1hell  
  • uisignorant
    Posted on October 9, 2012 at 2:41pm

    Cowards….
    I still want to know how an increase of 114 thousand translates into a 0.4% drop when the number to start with is 23 million. You would need 560K to drop 0.4%. WHAT HAPPENED TO THE OTHER 450 THOUSAND?

    Report this comment

    uisignorant  
    • PATTY HENRY
      Posted on October 9, 2012 at 2:48pm

      exactly…. or try this: if 113 K new jobs had the number at 8.1 for the month prior to this “amazing” drop…with 114K new jobs…meaning tht 1K new jobs can drop a number from 8.1 to 7.8

      yeah

      right

      GO JACK!! YOU have a TRILLION fans out here!

      Report this comment

      PATTY HENRY  
    • progressiveslayer
      Posted on October 9, 2012 at 2:51pm

      It’s the wonders of Marxism that created those numbers because that’s what Marxism is,deceit.

      Report this comment

      progressiveslayer  
    • vanman4446
      Posted on October 9, 2012 at 3:23pm

      Cooked books just like Welch said. Does anybody really believe the job numbers, does anybody believe the Obummer administration at all.

      Report this comment

      vanman4446  
    • helmuit_7
      Posted on October 9, 2012 at 4:58pm

      A TRILLION and ONE!!!

      Report this comment

      helmuit_7  
  • strawberry411a
    Posted on October 9, 2012 at 2:39pm

    Smart move. A stuutering teleprompting fool who understands nothing about the economics of this nation suddenly manages a mind-blowing drop in unemployment. Don’t think so. By the way who’s your daddy Obama?

    Report this comment

    strawberry411a  
  • Darmok and Jalad at Tanagra
    Posted on October 9, 2012 at 2:38pm

    He just did it so the unemployment rate goes back over 8%. I am on to your tactics Mr. Welch.

    Report this comment

    Darmok and Jalad at Tanagra  
    • roostercogburn
      Posted on October 9, 2012 at 5:46pm

      Well, if you look at the real numbers, the rate is a lot closer to 11%. I bet Obama is glad he didn’t get the mess that Carter left Reagan to fix, and Reagan turned it around in the first term. So what does Obama have, NOTHING, same as he did 4 years ago, just a lot of hot air, hey you want to know how to tell if Obama’s lying, his lips are moving..

      Report this comment

      roostercogburn  
    • Verceofreason
      Posted on October 9, 2012 at 7:27pm

      All ths experts who support the Administration’s figures and indirectly forced Welch to resign are not a smart as you.

      Report this comment

      Verceofreason  
    • Darmok and Jalad at Tanagra
      Posted on October 9, 2012 at 7:30pm

      I thought if he was reading the teleprompter he was lying…..Stu gave out the part-time and full time employment numbers, together the unemployment number is closer to 14%, either way you go, Bush was criticized when he had unemployment approach 7%, after 2 years of 5.5%

      Report this comment

      Darmok and Jalad at Tanagra  

Sign In To Post Comments! Sign In