TVA cutting 2,000-plus jobs in massive cost-saving effort
Published: August 6,2014
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.”
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- Molpus closes Fund after more than $662M in commitments
- Realtors chooses Nita Wingard
- DeSoto County Supervisor Lee dies in ATV accident on his birthday
- Entergy agrees to cut $35M from its new rate plan
- No debate, but Cochran and Childers lobby for votes for Senate
- MSU reminding fans that drones are prohibited at football games
- Politics of paying for transportation: Hand wringing and a lot of talk
- Ford Foundation gives to UM for new science building
- Kemper County plant will cost at least another $496M to complete