Rick,
this is the current state of play. I'll let you know if anything changes. Please let me know if you have any questions or concerns regarding this 'plan'
Ted
-----Original Message-----
From: Brown, Michael - COO London
Sent: 11 October 2001 12:24
To: Murphy, Ted
Subject: RE: Headcount

Looks fine generally , we can talk later about any increases .
Thanks
Michael

-----Original Message-----
From: Murphy, Ted
Sent: 11 October 2001 10:22
To: Brown, Michael - COO London
Subject: Headcount

Michael,
I wanted to give you an update on the personnel front given that things are moving fairly fast and I want to make sure that I am keeping up with the evolution of your and John's thinking about resources.


Our original 2001 budget (adjusted) had 52 heads
We have frozen the number at 44 which represents the people who are here (39) and those we have agreed to bring on board (5).
We expect to drop up to 6 full time from the redundancy process - manager, 4 specialists, associate.
we plan to send one manager to Houston, and delay one arrival so that there is less overlap with Rod Nelson (expected departure 6/30/02)
one employee would like to go part-time at beginning next year and I believe that she can be very productive in doing so.
we plan to use this process to drop one manager in Australia.
I am planning to take on 2 (director, sr specialist) from other EEL units into London-RAC - est 50/50 EEL/non-EEL
Also, one EEL-London employee (non-RAC) to relocate to Australia to replace person dropped in Australia.

Numerically, it looks like this:

Original Budget - 2001 52
Current Headcount 44
Net of Original Budget (%) 8 (18%)

New (adjusted) Budget 44

Redundant (6)
Delay (1)
Re-deploy to Houston (1)
Part - time (.5)
reductions (8.5)
sub-total 35.5

Add
EBS Director 1
Enron Credit Sr Spec 1
additions 2
New Total 37.5
net % change (from original 2001 budget) (28%)
net % change (from adjusted 2002 budget) (15%)

The 1 addition and 1 subtraction in Australia will run through the Houston Credit budget with an allocation back to Australia electricity 50% and Global Markets 50%
and represent a wash as regards headcount.

I would like to consider adding people up to the New (adjusted) Budget -44 -after the dust clears. There are some internal people who have expressed some interest and a few candidates we have gotten close on that might be good candidates to replace the ones made redundant. I am not asking for approval to do this. I will do so on a case-by-case basis after things settle out.

Let me know what you think.
Ted