“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.”
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.
