Local News - Local News - December 20, 2012
Avista Corp., of Spokane, disclosed this afternoon that a voluntary severance program it announced in October will result in the termination of 56 employees, or about 6 percent of the eligible 919 nonunion employees.
The total severance costs are expected to be about $7.5 million, the company said in a U.S. Securities and Exchange Commission filing.
All of the terminations are expected to be finalized by the end of the year, and the terminated workers will receive their severance in a lump-sum cash payment no later than Feb. 1.
Avista said when it announced the program that it was intended to reduce the company's workforce and its long-term employment costs. Employees electing to participate were to notify the company by Dec. 14, and their managers could decide whether to approve their termination. Avista said in the filing that about half of the people who elected to participate were terminated.
The company expects the long-term cost savings to exceed the severance costs in about a year and a half.
Prior to the terminations, Avista employed about 1,090 employees.