Entergy Corp. reports it will lay off about 800 workers following the release of its second quarter earnings.
Earnings per share for the second quarter of 2013 were $.92, a $1.14 drop from the same period in 2012.
According to a release by the company, the layoffs are part of a "redesign of the organization" meant to create "sustainable savings."
A company spokesperson said there will be about 240 layoffs across Louisiana and 25 in Baton Rouge.
"Difficult decisions like job reductions are sometimes the very tough outcome of making long-term, fundamental improvements in the way a company works," Leo Denault, Entergy's chairman and CEO said in the earnings release. "The redesign process has been comprehensive, thoughtful and focused squarely on being fair to our employees throughout the process and being responsive to the needs of our customers, our employees, our communities and our owners."
It is estimated the company will save about $200 million to $250 million by 2016.
Entergy highlighted the following factors in the report:
Utility earnings were lower driven largely by substantially higher income tax expense as well as higher non-fuel operation and maintenance expense and depreciation expense, partially offset by higher net revenue.
Entergy Wholesale Commodities earnings decreased due primarily to lower net revenue and higher decommissioning expense, partially offset by lower income tax expense.
Parent & Other results declined due to an increase in income tax expense on Parent & Other activities.
Entergy has released the following statement:
Difficult decisions like job reductions are sometimes the result of making long-term, fundamental improvements in the way a company works. This redesign process is being led by teams of Entergy employees and has the full involvement and oversight of the entire executive leadership team. Our goal is to improve the way we work and place the right people with the right skills in the right roles. The process is comprehensive, thoughtful and focused squarely on being fair and responsive to the needs of all our stakeholders – our customers, our employees, our communities, and our owners.
Teams of employees devoted thousands of hours analyzing and discussing how to rethink and reconfigure our organization to meet the future needs of our business and all stakeholders while remaining focused on safety, reliability and customer service. Jobs in some groups were added to address critical needs while elsewhere, work was eliminated that was not adding value or critical to daily operations. Extra care was given to ensure we did not adversely impact the safe and reliable delivery of electricity to our customers.