Major Threats to Northeast Utilities (Essay Sample)

THREATS TO NORTH EAST UTILTIES
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Threats to Northeast Utilities
North east utilities being an important company providing electric and services recently declared the laying off of some of its 100 employees but it was not clear how many in Connecticut. The Northeast utilities spokesperson asserted that half of the IT employees will be laid of even though 40 of them will be rehired as part of external sellers. Based on the company's management the laying off was necessary and that the company intends to hire out most of its information technology department and combine its operations which include those in Connecticut. The public utilities regulatory have already been requested to evaluate the impact on the intended of outsourcing would have on the firm in case of storm outages.
Additionally this review will focus on communication, feedback and the firm's adherence to merger agreements. According to the company's management even though the outsourcing and consolidation will be incurred, the expenses will be well monitored to which will result to low rates charged on consumers in starting next year. In actual sense, the management reiterated that even though the planned process has been announced change will not be seen immediately but after several months of operations. The plans for the merger have been considered as an opportunity to fine tune and improve the proposed outsourced function.
The company has in turn prepared a handsome severance package for the employees to avoid the layoff even though the company did not specify which jobs will be done away with. The company has considered that it would train again the existing employees in accordance with the job restructuring and reorganization. In extension the company expects to increase its savings with an integrated management using the most recent technology.
In a more detailed observation the planned layoffs will cause a loss of jobs to local income and opportunities to local citizens in the quest of the proposed plan. In addition, the companies plan to outsource the information technology to an Indian company which is not based in Connecticut will cause jobs to shift ...