In preparation for a proposed merger with Exelon Corp., Maryland company Constellation Energy Group has slowed its hiring rate and announced a plan to cut several hundred jobs. However, the company told its current employees that hiring is expected to increase in speed after the new year.
As discussed in a previous blog post, Exelon and Constellation currently await approval for their proposed $7.9 billion merger. The Maryland Public Service Commission, which oversees any purchase or sale of a business in Maryland, has yet to rule on the deal and could veto it if it finds that a merger would result in undesirable after-effects, such as increased energy rates of Maryland residents. The PSC is considered the merger's largest challenge.
In an issue of its biweekly merger newsletter, Constellation officials say they have been preparing for the ensuing layoffs by eliminating vacant positions or filling them with Constellation employees whose could be laid off from their current jobs. While Constellation currently employs about 1,200 workers in Maryland, about 600 jobs are expected to be cut following its merger with Exelon. However, Constellation has stressed that no jobs will be cut from its subsidiary company, Baltimore Gas and Electric Co., for at least two years after the deal. The company still lists more than 20 job openings.
Constellation plans to complete all planned downsizing by 12 months to 18 months after the merger, which is expected to be finalized by early 2012. The company has stated that it will provide buyout offers to select employees, but it is unclear how many workers this would affect.
Source: BizJournals (Baltimore Business Journal), "Constellation slows hiring, plans uptick after Exelon merger," Scott Dance, Dec. 5, 2011