DJ Mirant Lays Off More Employees; Further Cuts To Come
(This article was originally published Monday)
By Mark Golden Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Mirant Corp. (MIRKQ) is in the midst of laying off more employees, with numerous traders let go Friday and more layoffs to come, the company said.
The bankrupt independent power producer declined to say how many marketing and trade personnel were dismissed, but one former employee said that most all forward electricity traders were let go. Since declaring bankruptcy in July, Mirant hasn't been able to execute many forward trades, though it has been active in the spot market.
"We're looking at workforce reduction throughout our entire business, not just one place, like trading and marketing," said Mirant spokesman James Peters.
The company employees about 1,000 staff at its headquarters near Atlanta and another 6,000 at power plants and other offices worldwide. Staff reduction won't affect Mirant's ability to operate its plants and other energy facilities, Peters said.
In a bankruptcy filing earlier this month, Mirant sought permission to offer severance packages to as many as 1,000 union employees and 100 highly compensated employees making at least $200,000 annually. Layoffs in those two groups of employees could take place only if the judge approves the motion, which is scheduled for a decision Oct. 8. The 1,000 and 100 figures are the maximum number of employees that would be laid off in those two groups, Peters said.
But many Mirant employee aren't members of those two groups, like the marketing and trade department staff that was let go last week. The company cut 700 jobs last year in its effort to cut costs and avoid bankruptcy.
-By Mark Golden, Dow Jones Newswires;
