Company will eliminate 300 positions by year's end; about half vacant
ST. PETERSBURG, Fla., Aug. 28 /PRNewswire-FirstCall/ -- Reflecting the
state's economic downturn, Progress Energy Florida today announced that it
will eliminate about 300 positions by the end of the year. Nearly half the
affected positions are currently vacant.
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The reductions are part of a restructuring of the utility's Energy
Delivery organization, as well as its processes and staffing, triggered by the
ongoing economic slowdown, which has been particularly prevalent in Florida.
Growth in Florida continues, but at a slower pace than in prior years. Energy
use by the total customer base is also less than planned, due in part to an
increase in the number of vacant houses. The Energy Delivery organization
oversees the transmission and distribution of electricity from the plants to
the customers' homes and businesses, including customer service.
The restructuring and reductions come after a comprehensive assessment of
current and projected workload to ensure that business operations are as
efficient as possible. The reductions will affect managers, supervisors and
workers in craft and technical positions, such as engineers and technicians.
The company has eliminated 143 vacant positions and has identified 151
currently filled positions that will be eliminated before the end of the year.
Most of the positions are directly involved in service expansion and support
to new customers. New connections have dropped off dramatically, with about
2,000 new customers added between June 2007 and June 2008.
'The difficult economy is taking a toll on companies all around the
country and is particularly affecting our company in Florida,' said Progress
Energy Florida CEO and President Jeff Lyash. 'Laying off employees is never
our first choice. But we have a responsibility to ensure that our staffing and
resources match our changing business needs. We are committed to moving
through this process in a way that is sensitive to the needs of the employees
affected and that ensures we can maintain a high level of service to our
customers.'
The company is evaluating organizational structure and staffing levels in
other functions and business units, including Progress Energy Carolinas, the
Raleigh, N.C.-based utility. The economic downturn in the Carolinas has been
less pronounced than in Florida, and the company does not expect to need to
undergo major organizational changes in the Carolinas.
'Keeping our staffing levels aligned with our workload allows us to
effectively manage our costs, keeping prices affordable for our customers and
delivering on our financial commitments to our shareholders, who are our
company's main source of capital to invest in the future of the business,'
said Michael Lewis, senior vice president for Energy Delivery in Florida.
'This reduction in force will improve our flexibility as an organization and
ensure that we continue to provide excellent customer service.'
The company will provide transitional support to employees whose jobs are
eliminated. Some employees are expected to take positions in other company
organizations.
Progress Energy Florida, a subsidiary of Progress Energy (NYSE: PGN),
provides electricity and related services to 1.7 million customers in Florida.
The company is headquartered in St. Petersburg, Fla., and serves a territory
encompassing more than 20,000 square miles including the cities of St.
Petersburg and Clearwater, as well as the Central Florida area surrounding
Orlando. Progress Energy Florida is pursuing a balanced strategy for a secure
energy future. That balance includes aggressive energy-efficiency programs,
investments in renewable energy technologies and a state-of-the-art
electricity system. For more information about Progress Energy, visit the
company's Web site at www.progress-energy.com.
SOURCE Progress Energy
