AEP To Cut Workers
American Electric Power said it needs to reduce its workforce in its 11-state territory. The company said it's going with voluntary buyouts before it turns to layoffs.
American Electric Power hopes up to 2,000 workers will take buy-outs. AEP spokesperson Melissa McHenry said the company needs to cut between five and ten percent of its workforce. She said electrical demand is down from stores, restaurants and factories since the recession began in 2008.
"Our company generates income from the electricity we sell. That electricity has backed off. So some of that load reduction is likely going to be permanent or it's going to take several years to return," McHenry said. McHenry said the company instituted hiring and salary freezes last year. But she said more permanent measures have to be taken. McHenry could not say how many workers in Central Ohio will be affected. She said that will depend on who takes the buyout. As part of their severance, workers are offered two weeks pay for every year they have worked with the company.