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TVA eliminates 2,000 jobs as part of $500 million cost-cutting campaign

August 6th, 2014 11:33 am by Dave Flessner, Chattanooga Times Free Press

TVA eliminates 2,000 jobs as part of $500 million cost-cutting campaign

CHATTANOOGA — In its biggest staff cuts in more than two decades, TVA is eliminating more than 2,000 jobs this year to pare expenses and make electric rates in the Tennessee Valley more competitive with neighboring utilities.

Most of the staff reductions are being made by not filling vacant jobs and through retirements and resignations by the end of next month. TVA President Bill Johnson said Tuesday the voluntary reduction offers "were well received" and avoided the need for massive firings, although some employees are being laid off.

"We are well on our way toward achieving our multiyear goal of reducing operating and maintenance costs by a sustainable $500 million (below 2013 spending levels)," Johnson said. "Once we make that target, we will continue to look for ways to eliminate unnecessary costs and to live within our means."

TVA began fiscal 2014 with 12,612 employees. The planned cuts are likely to leave the federal utility with its leanest staff in more than a half-century and less than a fourth of the peak employment TVA reached in 1981 when TVA had 51,709 employees.

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