FirstEnergy eliminates 265 positions

Jan. 29, 2002 — FirstEnergy Corp. today implemented previously announced workforce reductions affecting duplicative positions resulting from its merger with the former GPU, Inc.

The reduction of 265 employees is in line with staffing level recommendations made following an in-depth study of operations conducted by employee teams during a 14-month period while FirstEnergy was awaiting regulatory approvals of the merger.

Affected employees primarily work in corporate support groups in Reading, Pennsylvania, and Morristown, including finance, legal, communications, human resources and information technology. They qualify for severance benefits, including a lump-sum payment based on years of service, career counseling, and up to three months of career transition services.

Merger related staffing actions to date total 668 positions — including this staffing reduction, 213 employees who left the company and will not be replaced, and 190 employees who will be retained for several months up to 18 months to complete merger-related transition assignments.

Some of those on merger-related assignments may be considered for job openings that occur as the result of workforce attrition. Annual savings related to these staffing actions are expected to amount to approximately $53 million.

FirstEnergy is a registered public utility holding company and its various subsidiaries produce more than $12 billion in annual revenues and sell 124 billion kilowatt-hours of electricity.

Other FirstEnergy affiliates are involved in the exploration and production of oil and natural gas, marketing of natural gas, and energy-related services.

FirstEnergy’s electric utility operating companies — Ohio Edison, The Cleveland Electric Illuminating Company and Toledo Edison in Ohio; Metropolitan Edison, Pennsylvania Electric and Pennsylvania Power in Pennsylvania; and Jersey Central Power & Light – comprise the nation’s fourth largest investor-owned electric system, based on serving 4.3 million customers within a 36,100-square-mile area that stretches from the Ohio-Indiana border to the New Jersey shore.

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