NiSource Inc. is losing no time in preparing for the expectedNov. 1 completion of its Columbia Energy acquisition, announcingThursday that about 5% or 800 of the employees of the two companieshave been notified their positions will be eliminated Dec. 1.

The company already announced who will be filling the top tier ofthe merged companies (see Daily GPI, Aug2; Aug. 24).

The workforce reduction is aimed at eliminating redundancies andincreasing efficiency. It will be accomplished by voluntary earlyretirements as well as voluntary and involuntary separations. Theywill be targeted throughout the organization geographically and atall staff levels. NiSource projects merger synergies will saveabout $100 million in 2001 and up to $175 million in 2004. Most ofthe projected savings will come from the elimination of duplicatecorporate and administrative programs.

The combined company plans to take a pre-tax restructuringcharge in the fourth quarter 2000. It also previously announcedthat it expects to strengthen its balance sheet by nearly $1.5billion through the sale of non-core assets.

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