Westinghouse Electric Co. has negotiated to cut its office space at Keystone Summit Park by more than 75 percent as the Cranberry-based bankrupt nuclear firm reorganizes to survive.
The surrendered space in Marshall Township includes two floors and 63,000 square feet, leaving Westinghouse with 18,000 square feet for offices while maintaining its shop space of 95,032 square feet in an adjacent building.
Westinghouse signed the amended lease a month ago, but the company made it public in its bankruptcy filings Tuesday.
The company, which filed for bankruptcy in late March, is working to reposition the focus of its business on money-making pursuits, such as nuclear fuel and services. It has been forced to de-emphasize new nuclear construction, first by the bankruptcy and more recently by the abandonment of two of the four AP1000 power plants under construction in the United States.
The emptied office space will save the company $1.73 million a year until the lease expires in 2025, Westinghouse said in documents. Another amended lease made public Tuesday cut nearly in half Westinghouse’s space in a large warehouse in Connecticut for $1 million in annual savings.
On July 31, Westinghouse had said it has submitted a five-year business forecast to its bankruptcy lenders which includes “transformation savings” of $205 million over that period.
Included in that plan is a 7 percent reduction in headcount across the company’s operations. Westinghouse employs 14,000 people globally and about 4,500 in the Pittsburgh region.
Two weeks ago, Westinghouse laid off 870 employees who were working on or supporting the VC Summer nuclear power plant project in South Carolina, which was canceled.
Anya Litvak: firstname.lastname@example.org or 412-263-1455.