NRG Energy Layoffs: Company to Use Contract Employees After Axing Jobs

Restructuring process within organization or company
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NRG Energy Inc (NYSE:NRG) appears to be quietly seeking contract workers to help maintain power plants in Houston. NRG operates nine power plants and owns all or part of seven wind and solar projects in Texas.

The move comes just days after the energy giant said it was going to lay off long-time employees across the country, including 100 in Houston, to cut costs and slash debt.

Earlier this week, Princeton, New Jersey-based NRG announced plans for company-wide layoffs as it looks to appease investors and return to profitability. The company did not say how many workers would lose their jobs, but at least 100 employees based in Houston were given pink slips.

The layoffs are a result of a shareholder-driven effort announced in July to transform the company. The three-year, three-part plan will see the company divest itself of $4.0 billion in assets, with cost savings in operations, portfolio optimization, and better capital structure and allocation.

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NRG Energy expects its plan to be fully implemented by the end of 2020, with significant completion by the end of 2018.

Despite the recently announced layoffs, NRG still needs to get things done. To that end, the company has apparently decided to use contract workers to help maintain its power plants in the Houston area. Some of the recently jettisoned NRG employees had more than 30 years of experience working as plant maintenance workers.

Billeter Recruiting is advertising for 100 contract workers to do maintenance during planned shutdowns at Cedar Bayou, Greens Bayou, San Jacinto, TH Wharton, and W.A. Parish plants in Texas.

NRG Energy would not confirm that the eliminated positions will be replaced by contract work, but employees who were laid off said Billeter is recruiting for the jobs they did. Temporary contract workers are an attractive alternative as they are paid less than full-time employees and receive significantly fewer benefits.

In the second quarter of 2017, NRG’s revenues increased 20.2% year-over-year to $2.7 billion. The company reported a second-quarter loss of $642.0 million compared with a $276.0-million loss in the second quarter of 2016.

Total operating costs and expenses in the quarter increased 17.2% to $2.4 billion, while the company’s adjusted EBITDA was $685.0 million, down 1.9% from $698.0 million a year ago.

 

Sources

Apply to Jobs,” Billeter Recruiting, last accessed August 10, 2017.

NRG Energy, Inc. Reports Second Quarter Results and Reaffirms 2017 Financial Guidance,” NRG Energy Inc, August 3, 2017.

NRG Energy Launches Transformation Plan,” NRG Energy Inc, July 12, 2017.

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