FirstEnergy to Lay Off 335 Employees
FirstEnergy Corp. has announced that a recently completed organizational study will result in a staffing reduction of 335 in its management and support staff. The reduction is part of a larger effort to enhance efficiencies in response to the global economic downturn.
"These are very difficult decisions, but they are necessary to ensure that FirstEnergy continues to be strong and adaptable in the face of uncertain economic times," said Anthony J. Alexander, president and chief executive officer of FirstEnergy. "While this reorganization has been under way for some time, it became necessary that we make changes now to ensure we have the right structure in place to meet the challenges ahead."
The reduction represents about 4 percent of the company's non-union workforce. Eligible employees will receive severance benefits and career counseling services. As a result of the reorganization, the company expects to take a one-time, after-tax charge of $16 million for severance-related benefits. Ongoing expenses are expected to be reduced by approximately $37 million annually.
FirstEnergy is a diversified energy company headquartered in Akron, Ohio. .
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