Transalta Corp. (TAC) Plans Further Headcount Reduction

Transalta Corp. (NYSE: TAC) announced further staff reductions as it continues to focus on improving its competitive position and meeting the needs of its customers in a dynamic economic environment.

Earlier this year TransAlta improved productivity at its Canadian coal and mining business unit by reducing the headcount by 247 employees and optimizing mine operations, changes which are expected to reduce costs by approximately $22 million.

TransAlta today further reduced its overhead costs by eliminating 239 positions, primarily at its corporate head office in Calgary, which is expected to result in an additional cost-savings of approximately $25 million.

These changes are part of decision to streamline operations, decentralize decision-making and reduce management to meet TransAlta's goal of being "the lowest-cost producer in the Alberta so that we can be profitable in any market conditions," said Donald Tremblay, Chief Financial Officer.

"These are important steps in the context of a very competitive Alberta market and they will ensure sustainable cost reductions into the future," said Mr. Tremblay. Ongoing economic and regulatory uncertainty has made it necessary for TransAlta to reduce its workforce to control costs and manage the impact of Alberta's economy on demand for electricity. "We have responded to these challenges by sharpening our focus on providing the most competitive pricing for our customers," he added.

The total number of position reductions in the company, including positions closed through lay-offs, attrition and a hiring freeze, is now 486 for 2015. Total costs savings related to restructuring are expected to be approximately $47 million.

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