Sept. 02--Nuclear power giant Exelon says it plans to cut costs -- and it isn't ruling out layoffs.
Citing increased competition and low energy prices, the Chicago-based company released a statement Tuesday saying it aims to achieve savings over the next two years.
The statement followed a story by Crain's Chicago Business that cited an internal memo in which Exelon CEO Chris Crane told employees that "potential position reductions at the executive level and below" were planned as part of a plan to tackle the fact that "overhead has grown at a faster rate than the company's revenues."
Exelon spokesman Paul Adam declined to discuss the memo or possible job losses Tuesday, instead releasing a statement. "Recognizing that we operate in an increasingly competitive business, and that we continue to face depressed energy prices and low load growth, we are implementing an effort to reduce costs, with savings to be achieved by the end of 2017," the statement said.
The statement concluded, "In no case will we make cost cuts that jeopardize safety or reliability."
If layoffs do follow, Exelon will be the latest in a string of major Illinois employers to scale back its workforce. Mondelez, Walgreens, Motorola and McDonald's have all announced planned cuts in recent weeks.
Exelon, one of Illinois' largest employers, has suffered setbacks in recent years as it struggles with money-losing nuclear power plants and attempts to shift its focus to the less-risky regulated utility business.
In the latest blow to the firm, its proposed merger with East Coast utility Pepco Holdings last week was blocked by a Washington, D.C., commission. Both Exelon and Pepco have indicated they will appeal that decision.
kjanssen@tribpub.com
