Dynegy Inc. on Monday cut its workforce about 14%, with nearly 600 positions lost in Houston and another 180 cut from offices around the United States, Canada and Europe. The news should not have been a surprise; Dynegy had prepared employees late last month with warnings that reductions would be coming (see Daily GPI, Sept. 30).

Spokesman David Byford told NGI that no further reductions are expected. Annual savings from the reductions are expected to exceed $100 million.

“The reductions are from all over the organization,” he said, with no specific units cut completely. Most of the cuts impact Dynegy’s corporate infrastructure and its marketing and trading businesses in North America and Europe. Fewer cuts were made in Dynegy’s four core units: power generation, natural gas liquids, regulated energy delivery and communications businesses.

Following the restructuring, Dynegy’s workforce worldwide will number about 4,600. Houston, where it is headquartered, will staff about 775, down from 1,380. The reduction includes employees already in transition roles as Dynegy exits the marketing and trading business. Employees who are cut or are in transition will be given the opportunity to apply for other jobs created through attrition. The fired workers will be eligible for severance benefits based on credited length of service with Dynegy, and professional career search assistance is available as well.

“Our restructuring defines the strategic direction of this company,” said Chairman Dan Dienstbier. “Unfortunately, given today’s market conditions, this company cannot support the same number of employees that we have in the past. Given the quality of our employees and the commitment they have demonstrated over the years, this was a difficult decision to make, but a necessary one as we prepare Dynegy for the future.” Dienstbier added, “the direction for our company and all of our employees is to focus on building a successful new organization while maintaining our customer relationships.”

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