April 14, 2010
AEP to cut jobs across state; Buyout offer made to workers in W.Va. and 10 other states
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CHARLESTON, W.Va.-- American Electric Power plans to cut up to 2,200 jobs in 11 states, including West Virginia, through a buyout offer to employees, the company announced Wednesday. 

The utility wants to shed 5 to 10 percent of its workforce, and warned that it may have to lay off workers if not enough employees accept the voluntary severances.

Appalachian Power, an AEP subsidiary, has 2,780 employees in West Virginia, so as many as 278 power company workers across the state could be affected.

"It's to address the impact of the economy on our company," said Jeri Matheney, an Appalachian Power spokeswoman. "There are signs of recovery, but it could take several years to get back to the electric demand that we saw before the recession."

Matheney said AEP and Appalachian Power have many workers age 60 and older -- those most likely to accept a severance package.

The buyout pays two weeks of salary for every year of service, so veteran workers would stand to gain the most from the buyout.

"We have lots of people with 30 or 40 years of service," Matheney said. "For employees close to retirement, this could be just what they're looking for."

The offer has no age restriction, and all employees are eligible.

AEP workers have until April 30 to decide whether to accept a buyout. The company plans to determine whether more cuts are needed in May.

The terms of the separation agreement would be the same, no matter whether employees accept the buyout or get laid off.

"We're hoping we can accomplish what we need with the voluntary severance package," Matheney said. "But it could result in involuntary reductions. We're looking out how we can make every group within the company as efficient as possible,""

She said AEP has slashed costs by reducing its operating budget, cutting capital expenditures and freezing employee salaries over the past year.

"Although we've done a lot to reduce expenses, it's not enough," she said.

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AEP to cut jobs across state; Buyout offer made to workers in W.Va. and 10 other states

CHARLESTON, W.Va.-- American Electric Power plans to cut up to 2,200 jobs in 11 states, including West Virginia, through a buyout offer to employees, the company announced Wednesday. 

The utility wants to shed 5 to 10 percent of its workforce, and warned that it may have to lay off workers if not enough employees accept the voluntary severances.

Appalachian Power, an AEP subsidiary, has 2,780 employees in West Virginia, so as many as 278 power company workers across the state could be affected.

"It's to address the impact of the economy on our company," said Jeri Matheney, an Appalachian Power spokeswoman. "There are signs of recovery, but it could take several years to get back to the electric demand that we saw before the recession."

Matheney said AEP and Appalachian Power have many workers age 60 and older -- those most likely to accept a severance package.

The buyout pays two weeks of salary for every year of service, so veteran workers would stand to gain the most from the buyout.

"We have lots of people with 30 or 40 years of service," Matheney said. "For employees close to retirement, this could be just what they're looking for."

The offer has no age restriction, and all employees are eligible.

AEP workers have until April 30 to decide whether to accept a buyout. The company plans to determine whether more cuts are needed in May.

The terms of the separation agreement would be the same, no matter whether employees accept the buyout or get laid off.

"We're hoping we can accomplish what we need with the voluntary severance package," Matheney said. "But it could result in involuntary reductions. We're looking out how we can make every group within the company as efficient as possible,""

She said AEP has slashed costs by reducing its operating budget, cutting capital expenditures and freezing employee salaries over the past year.

"Although we've done a lot to reduce expenses, it's not enough," she said.

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