The company will cut 48 jobs in its corporate division and make early retirement offers to 400 employees across its operating divisions. In decentralizing its corporate division, the company will transfer some duties from its Austin and Kansas City offices to offices in Texas, Missouri, Pennsylvania and New England.
A prepared announcement on the reorganization did not address whether Southern Union would reduce its office space or make other real estate adjustments. Company representatives were not available to speak to that this morning.
Southern Union, which serves 1.6 million customers in six states and Mexico, has taken 60,000 sf in Barton Skyway IV, a 222,835-sf building due to open in January. Its offices are currently in Lavaca Plaza in Austin's CBD.
The reorganization is part of a plan the company announced earlier to increase its cash flow and earnings. The company will take a one-time charge of $30 million to $35 million in the quarter ending Sept. 30. It expects to save as much as $40 million a year because of the changes.
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