Exelon Corp. (EXC) said it would record a $40 million severance charge in the second quarter for slashing 500 jobs as part of its restructuring initiative.
The nation’s largest nuclear power company has been trying to cut costs in order to buffer itself against a slump in demand for utilities amid the ongoing recession. Its plans to lay off employees, freeze executive compensation and other incentives are expected to yield $350 million in annual savings. Exelon currently employs about 17,000 people.
While 12 analysts on average expect the Chicago, Illinois-based company to earn 98 cents per share in the second quarter, the most accurate estimate is pegged at 94 cents.
Exelon is still pursuing its hostile $5 billion bid for Princeton, New Jersey-based NRG Energy Inc.(NRG) that could create the biggest power producer in the country. NRG’s annual general meeting next month is expected to decide the future of that deal.
Shares of Exelon were up more than 4% to $50.67 at noon on the New York Stock Exchange.
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