Washington: Exelon, the largest US operator of nuclear power plants, announced Thursday it was imposing 500 job cuts to cope with tough economic times.
The spending cuts will achieve about $350 million in operations and maintenance savings in 2010, a nearly 3.5% reduction from 2009 levels, the Chicago-based company said in a statement.
“Included in the spending cuts will be the elimination of approximately 500 positions, mostly in corporate support functions,” it said.
Some 400 job losses would be at corporate headquarters while 100 “management level positions” at Exelon’s ComEd utility in Illinois will also be “eliminated.”
Exelon and ComEd expect to complete most job reductions by August 31.
“Eliminating even a single job is painful, but we must reduce the size of our employee team in order to achieve the leaner and more efficient organizational structure required by today’s difficult economic and business circumstances,” company chief executive John Rowe said.
The company said it had also revamped its senior executive team and structure to reflect a “leaner corporate management model” following “economic challenges confronting all parts of Exelon’s business and industry.”
Taking into account job reductions, changes to the company’s compensation program and other cuts, Exelon projects a nearly 3.5% decrease in year-over-year operations and maintenance spending, from $4.5 billion in 2009 to $4.35 billion in 2010.
Exelon is making a hostile takeover bid for New Jersey-based NRG Energy in a $5 billion deal that would create the nation’s largest power.