PPL says it's cutting 450 jobs ahead of planned generating plant spinoff

MarketsAssociated Press

A Pennsylvania utility says it's eliminating 450 jobs as part of cost-cutting stemming from a planned spinoff of its competitive generation business.

Allentown-based PPL Corporation on Tuesday said severance packages and existing vacancies will keep the number of layoffs under 200.

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PPL disclosed the planned job reduction in a third-quarter earnings report.

The company reported third-quarter earnings of $497 million, or 74 cents per share, an increase from $410 million, or 62 cents per share, a year ago.

PPL and Riverstone Holdings are combining their competitive generation businesses to form Pennsylvania-based, publicly traded Talen Energy.

PPL owns 12 generating plants with a generating capacity of nearly 10,000 megawatts. Riverstone's 15 facilities produce 5,325 megawatts.

PPL says it expects the spinoff to close in the first half of next year.