New Orleans-based Entergy Corp. will be cutting roughly 5 percent of its workforce — about 800 jobs — as part of a cost-cutting plan. The power company, which employs about 15,000, said the layoffs would save between $200 million to $250 million by 2016.
The company had previously announced that it would be reorganizing to increase efficiency, although it did not provide any details of how many employees might be affected by the cost-cutting initiative, according to Power Engineering.
The company earned $163.7 million, or 92 cents per share, for the three months ending June 30. The company earned $365 million, or $2.06 per share, over the same time period in 2012, although that time period included favorable tax terms on financing costs for fixing damage to lines and equipment caused by hurricanes Katrina and Rita.
The report states utility earnings fell mostly because of large income tax expense, though depreciation expense and non-fuel operation and maintenance expense also increased. The two largest factors in the decline of wholesale commodities earnings were lower revenue and increase decommissioning expense.