UPDATE 1-NRG Energy to cut 500 jobs as part of GenOn deal
July 23 (Reuters) - NRG Energy Inc, which offered to buy GenOn Energy Inc on Sunday, said it will cut net headcount by 500 employees in the combined company to reduce overlaps in work groups.
"We expect to reduce the combined company's net headcount by about 500 employees across NRG and GenOn administrative functions and locations," NRG said in an internal memo dated July 22 filed with Securities and Exchange Commission.
NRG offered to buy rival GenOn Energy for $1.7 billion in stock to form the largest U.S. independent power producer as both companies contend with sagging electricity prices.
NRG also said it will communicate all staffing decisions by Oct. 15 and "hope to fill existing open positions with employees whose jobs are affected."
The two energy companies said the combination would create the largest competitive U.S. power generator with a fleet of 47,000 megawatts.
Shares of NRG closed at $19.52, while those of GenOn closed at $2.29 on Monday on the New York Stock Exchange.
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