AKRON, Ohio — Several major changes are coming to Akron-based FirstEnergy Corp.
The company has announced it will relocate its headquarters from downtown Akron to its West Akron campus and leave its corporate building in Brecksville. In a separate and unrelated action, FirstEnergy will be cutting 90 employees, while making an additional 670 eligible for early retirement.
Here is a breakdown of each of the moves by FirstEnergy:
"Facilities Optimization Plan"
FirstEnergy says the COVID-19 pandemic prompted the company to evaluate its workplace and give employees greater flexibility to work from home.
"As we made our transition to a more flexible way of working, it became clear that having a large mobile workforce – those that do not need to report to an office to do their jobs and primarily work from home – provided the company an opportunity to reevaluate office space needs," Young explained.
FirstEnergy says the review, which began more than a year ago, prompted plans to transition out of four of its corporate buildings: its Akron General Office, its northern region headquarters in Brecksville, plus offices in Pennsylvania and New Jersey.
Currently, 90% of the 925 employees at the Akron General Office are designated as mobile. Of the 140 employees at the Brecksville facility, 65% are classified as mobile.
Young says the transition and relocation process could take "several years" to complete. No date has been established for the closing of the Akron and Brecksville offices.
In the meantime, FirstEnergy's corporate headquarters will stay in Akron, moving to the company's West Akron campus on White Pond Drive. Meanwhile, FirstEnergy adds that it will "explore real estate options and relocation opportunities for the other corporate facilities."
FirstEnergy has been in a long-term lease deal for its corporate headquarters with McKinley, Inc. that is set to run through 2035. Young says the company recently gave notice to exercise its option to purchase the building.
"This step will allow FirstEnergy to end its long-term lease, providing the flexibility to implement the company’s facilities optimization plan and move employees to other reporting locations in the area," she stated.
Cutting 90 employees
According to a statement from FirstEnergy spokesperson Jennifer Young, the move to separate from approximately 90 employees comes "after a thorough review." She adds that "this action reinforces the company's focus on continuous improvement and accountability."
For perspective, FirstEnergy currently employs approximately 12,330 people.
Voluntary retirement
FirstEnergy has implemented a Program for Enhanced Employee Retirement (PEER) for non-bargaining employees. "The program is completely voluntary, and it's up to eligible employees to decide whether or not they wish to participate," Young explained.
The company says approximately 670 employees are eligible for the program. Active non-bargaining employees who are age 55 or older with at least 10 years of service as of Dec. 31, 2023, are eligible to participate. Some employee groups, including those involved in FirstEnergy's day-to-day core operations serving customers, are not eligible.
"Although not easy, these steps will help FirstEnergy continue to put in place the tools, technology, processes and a continuous improvement mindset that we need to modernize our operations, provide an exceptional customer experience and foster a workplace where every employee contributes to our company’s success," Young added.