DEARBORN, Mich., July 9, 2002 – CMS Energy Corp. on Tuesday announced it would cut $50 million in annual costs through several means such as relocating its headquarters, reducing the staff and altering employee benefits.
New initiatives being announced recently include the following:
“- Relocating CMS Energy’s corporate headquarters from Dearborn, Michigan to a new headquarters building currently under construction in Jackson, Michigan. The Jackson headquarters building is scheduled to open beginning in March 2003 and will house an estimated 1,450 CMS Energy and Consumers Energy employees. The relocation will reduce corporate employee staffing requirements by an estimated 50 positions, and will reduce office lease, travel, salary and information technology costs;
“- Changes in the Company’s 401(K) savings program which provide additional savings for the Company and enhanced investment options for employee participants;
“- Changes in the Company’s health care plan in order to keep benefits and costs competitive.
In addition to these initiatives, the Company also announced that compensation for CMS Energy’s Chairman and Chief Executive Officer Ken Whipple will be largely deferred and based on the performance of CMS Energy stock, thereby tying his compensation to the Company’s future performance.
“We are committed to restoring our Company’s financial health, and continuing the back-to-basics focus on our primary North American assets, which we announced last year. The ongoing savings measures we are announcing recently, in addition to cost reduction efforts already underway, are significant steps in our plan to improve over time, our cash flow and balance sheet,” said Whipple.
CMS Energy Corporation is an integrated energy company, which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, independent power generation, oil and gas exploration and production, and energy marketing, services and trading.
For more information on CMS Energy, please visit our web site at: www.cmsenergy.com/