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EDITIONS
Wednesday, 16 October, 2002, 18:54 GMT 19:54 UK
Dynegy to abandon energy trading
Dynegy logo on the streets of downtown Houston
Dynegy is set to cut hundreds of jobs
Energy firm Dynegy has said it is to pull out of the energy trading business as part of a major restructuring at the firm.

The company also announced that its president and chief operating officer Steve Bergstrom had resigned, and it warned that more staff cuts would be on the way.

The collapse of energy trader Enron last year has led to problems throughout the energy trading sector.

In the past year Dynegy has seen its share price plummet, faced severe financial difficulties and has been investigated by federal agencies.

Job losses to follow

Dynegy said the closure of its energy trading operations would help to reduce the drain on its finances.

The move is expected to lead to the loss of hundreds of jobs, and Dynegy said details of the layoffs would be given "in the near future".

The firm currently employs 5,500 workers worldwide.

Dynegy's restructuring will see it become a holding company overseeing four divisions: power generation, natural gas liquids, regulated energy delivery and communications.

The move got the full backing of the departing chief operating officer.

"I fully support the steps leadership is taking to address current market conditions and position the company for the future," Mr Bergstrom said.

Last month, Dynegy agreed pay the US Securities and Exchange Commission (SEC) $3m to settle claims that it improperly accounted for a natural gas deal, and made trades aimed at artificially boosting revenues.

The payment was made without admitting to or denying the SEC's findings.


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