Central Alabama Water Cuts Staff by 32% to Avoid Rate Hike

0:00What's up Birmingham? This is Birmingham News Today, bringing you the city's fastest updates on what is happening now. Central Alabama Water has slashed its workforce by a third amid serious financial troubles. On Friday, the utility laid off 135 employees, making up 23% of its staff. It also cuts 76 empty-funded positions for a total drop of 211 jobs or 32% overall. Now, just 449 people remain on the payroll. The cuts aim to save $20 million $100,000 a year in labor costs. Officials say this avoids a 10% rate hike that customers would otherwise face. Management spend months planning after revealing deep operational issues and a bond rating drop. The CEO described the move as tough, but vital to keep the utility afloat. Leaders in HR are now meeting laid-off workers to explain severance and next steps. Every division felt the impact, showing broad changes across the board.

1:00This follows years of mismanagement exposed in recent reports. State law demands efficient operations focus solely on customers, with staffing matching similar water utilities. The reductions align with those legal requirements. Meanwhile, the physical payment center has shut down, like many peers, and the Kahaba Museum and Conference Center closes temporarily. A revised budget for 2026 heads to the board on March 20th. The Daily News Now is powered by our sponsor. Some people meditate, I just lay down and press play, S-O-L-I-S-O-L-Pillow.com.