) is slashing its dividend by half in an effort to align its payout to shareholders with the cash flow it is generating.

In a press release, the 125-year-old giant said it plans to cut the company’s quarterly dividend to $.12 a share from $.24 a share. The change is effective starting in December when GE declares its next quarterly dividend. (See more: GE’s Shrinking Cash Flow Signals Stock’s Tragic Decline.)

“We understand the importance of this decision to our shareowners and we have not made it lightly. We are focused on driving total shareholder return and believe this is the right decision to align our dividend payout to cash flow generation,” said John Flannery, the new Chairman and CEO of GE, who replaced Jeff Immelt in August. “The dividend remains an important component of GE’s capital allocation framework. We are acting with urgency to make GE simpler and stronger to drive growth and create more value for our shareowners.”

In recent years, the conglomerate has been…