FirstEnergy Corp. (FirstEnergy), a diversified energy company, has completed organizational study that will result in a staff 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. The reduction represents about 4%of the company’s non-union workforce.
“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.