CHATTANOOGA, Tenn. — The nation’s largest public utility is eliminating more than 2,000 jobs as part of a $500 million cost-cutting campaign.
The Chattanooga Times Free Press reports the Tennessee Valley Authority is making the cuts this year to pare expenses and make electric rates in the Tennessee Valley more competitive with neighboring utilities.
Most of the staff reductions are being made by not filling vacant jobs and through retirements and resignations by the end of next month.
More than 900 employees agreed to resign or retire and were given a week’s pay for each year of employment. Another 1,000 staff vacancies were not filled.
TVA declined to detail the number of layoffs, which are the agency’s largest in more than two decades.
TVA President Bill Johnson said this week that the voluntary reduction offers well-received and avoided the need for massive firings, although some employees are being laid off.
“We are well on our way toward achieving our multiyear goal of reducing operating and maintenance costs by a sustainable $500 million (below 2013 spending levels),” Johnson said. “Once we make that target, we will continue to look for ways to eliminate unnecessary costs and to live within our means.”
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info