Dynegy to fire 14% of work force, expects to save $100 million a year

October 22, 2002|By BLOOMBERG NEWS

HOUSTON - Dynegy Inc., which is abandoning its energy-trading business, said yesterday that it is firing about 780 workers, 14 percent of its work force, including an estimated 600 in Houston.

The job cuts are expected to save the company more than $100 million a year, Dynegy said. The firings will reduce the Houston company's work force to about 4,600.

The company said last week that it would quit energy trading to conserve cash and avert bankruptcy. Halting trades in electricity and natural gas markets will lower costs for the company, which has $1.6 billion in debt payments due in the next seven months.

"Unfortunately, given today's market conditions, this company cannot support the same number of employees that we have in the past," said Daniel L. Dienstbier, Dynegy's chairman and interim chief executive.

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