AES Corp. eyes layoffs as part of wider restructuring effort

|About: The AES Corporation (AES)|By:, SA News Editor

AES Corp. (AES -4.1%) subsidiaries Indianapolis Power & Light and Dayton Power & Light say they plan to lay off ~160 employees during Q2.

The cuts are part of a broader reorganization at AES that includes shrinking the company’s global footprint down to 16 countries from 28, selling $2B in assets in its non-Americas units, and shedding its coal-fired plants in an effort to reduce its emissions profile.

The layoffs are viewed positively by BofA Merrill Lynch analyst Julien Dumoulin-Smith, who sees the potential for upside from AES' $50M in targeted annual cost savings and a resulting increase in earnings guidance.