HOUSTON, Texas, June 20, 2002 — Dynegy Inc. on Thursday announced it has laid off about 340 employees from its Houston office and halted trading on its on-line site, Dynegydirect.
On Wednesday night, the company notified customers by e-mail that trade on its had been discontinued on its online energy trading web site due to market developments and the poor credit environment in the energy industry, Reuters News Service reported.
Dynegy is still making trades by phone and expects to reactivate the trading site when market conditions stabilize, Dynegy spokesman Steve Stengel.
The staff reduction is part of an attempt to cope with current market conditions and lower costs, Dynegy has said.
Approximately 340 employees throughout the company, representing about 6 percent of Dynegy’s overall global work force, were impacted by this reduction.
In Houston, the reduction totaled 300 employees, including about 50 employees from the company’s trading business, or approximately 15 percent of Dynegy’s work force in its headquarters city.
These reductions, along with attrition and retirements, are expected to result in annual savings in excess of $35 million.
“Dynegy has always been an efficient organization, especially from a work force standpoint,” said Dan Dienstbier, chief executive officer of Dynegy Inc. “Nevertheless, the new business environment in the merchant energy sector requires that we pare down certain businesses, such as power trading, and adjust accordingly in order to position the company for long-term, sustainable profitability.”
Dienstbier added that Dynegy is providing severance payments based on employees’ credited length of service with the company and that career search assistance is available for affected personnel.
With the announcement, Dynegy said it would continue with measures to enhance the company’s financial position, strengthen its balance sheet and improve its credit profile.
Dynegy Inc. produces and delivers energy, including natural gas, power, natural gas liquids and coal, through its owned and contractually controlled network of physical assets.
The company’s trading site, Dynegydirect, had about 2,300 users on the system. The system provided real-time information and direct access to more than 750 products and services including trading in power, natural gas and coal.
The company’s web site is www.dynegy.com.