Baltimore Gas and Electric confirmed on December 10, 2025, that layoffs will soon impact its workforce. The Maryland utility, serving 1.3 million electric and 700,000 gas customers, announced it would “strategically scale back or pause certain workstreams.”
The company provided no specifics on job numbers, implementation timeline, or estimated savings. BGE President and CEO Tamla Olivier acknowledged the difficult decision, stating the company remains committed to serving customers during this transition period.
Company Cites Need for Cost Management
BGE justified the layoffs as necessary for “operating efficiently and managing costs responsibly” while strengthening “long-term ability to serve customers and advance commitment to affordability and reliability.” A company spokesperson emphasized that decisions were driven by reduced workload from scaling back certain projects.
The utility is working with International Brotherhood of Electrical Workers Local 410, which represents BGE’s unionized workforce. No line crews, gas mechanics, or emergency response positions were identified for elimination, according to company statements.
At Least 67 Positions May Be Eliminated
While BGE has not officially disclosed layoff figures, internal talking points provided by IBEW Local 410 suggest at least 67 employees could be affected. Union representatives describe the cuts as targeting gas construction and maintenance workers, mechanics, and trainees.
However, negotiations between BGE and the union remain ongoing, with final numbers and specific positions still being determined. The timing—just before the December holidays—has drawn criticism from workers and advocacy groups concerned about family impacts.
Winter Timing Raises Service Concerns
The layoffs announcement comes during peak winter heating season, historically the busiest period for utility response times. Union officials worry that workforce reductions could slow emergency outage response and field crew availability during cold months.
IBEW 410 warned that inadequate internal staffing could force BGE to rely increasingly on expensive contractors for storm-related outages and routine maintenance. Service reliability concerns intensified given Maryland’s winter weather patterns and grid demands.
Call Center Crisis Adds to Service Strain
In parallel with layoff announcements, Maryland’s Public Service Commission investigated BGE’s failing customer service. From July through December 8, 2025, regulators received over 600 complaints about excessive wait times and inaccessibility.
Customers reported inability to reach representatives regarding critical issues including billing and winter shut-off notices. BGE disabled the hold queue, citing high volumes. The company committed to hiring 30 additional customer service employees, though full onboarding requires six to eight weeks.
New CEO Tamla Olivier Takes Leadership Role
Tamla Olivier, who assumed the BGE presidency in May 2025, now oversees the utility during its cost-cutting initiative. She previously served as chief operating officer of Exelon’s Pepco Holdings, managing three utilities across four jurisdictions.
Olivier brings 15 years of Exelon experience, including prior roles as BGE’s chief customer officer and CEO of BGE Home. Her statement acknowledged difficulty while expressing confidence in the organization’s ability to navigate the transition.
Regulatory Uncertainty Drives Strategic Shift
BGE cited “tremendous regulatory uncertainty” as a primary factor in the layoff decision. Maryland’s General Assembly passed legislation eliminating the reconciliation process allowing utilities to recover cost or revenue variances from ratepayers.
The Next Generation Energy Act, enacted in April 2025, imposed new restrictions on gas infrastructure projects and prohibited multi-year rate plan reconciliation for plans filed after January 2025. These changes fundamentally altered how BGE can recover operational expenses.
Union Disputes Cost-Cutting Rationale
IBEW Local 410 contradicts BGE’s operational narrative, noting the company maintains substantial workloads despite claiming reduced projects. Union representatives highlighted BGE’s hiring freeze implemented since June 2025 for skilled positions including linemen, cable splicers, and gas mechanics.
The union argues layoffs would reduce internal workforce capability while increasing contractor dependence—a practice already driving up costs. Union statements note BGE reported record 2024 profits of $527 million while cutting skilled workers.
BGE’s Record Profits Fuel Skepticism
BGE generated $527 million in net income during 2024, representing substantial profit growth from $485 million in 2023 and $380 million in 2022. Parent company Exelon reported adjusted operating earnings of $2.50 per share for 2024, exceeding expectations.
BGE’s third-quarter 2025 adjusted operating earnings nearly doubled to $82 million from $45 million in the prior year, primarily due to distribution rate increases. This financial performance contrasts sharply with workforce reduction announcements, intensifying worker and customer concerns.
Rate Hikes Burden Maryland Customers
BGE customers face substantial increases in energy costs. Gas rates have surged 50 percent since 2020, while electric rates increased 30 percent over the same period. On January 1, 2025, BGE implemented rate hikes increasing average residential gas bills by 9 percent and electric bills by 7 percent.
The Maryland Public Service Commission approved a multi-year rate plan in December 2023 authorizing nearly $408 million in increases over three years for combined services.
Operation Pipeline Drives Infrastructure Spending
BGE’s massive gas pipeline replacement program, Operation Pipeline, represents a significant driver of rate increases and company spending. The multi-billion-dollar initiative, begun in 2014, will continue until 2043 at costs exceeding $15 billion.
Annual spending approaches $160 million, with funding recovered through customer rates. However, consumer advocacy groups including Maryland PIRG argue the program fails to properly prioritize safety and creates unsustainable affordability burdens on ratepayers.
Industry Adopts Cost-Cutting Strategies
BGE joins multiple U.S. utilities announcing workforce reductions throughout 2025. Verizon announced 15,000 layoffs, UPS cut 48,000 positions, General Motors eliminated 1,700 jobs, and ConocoPhillips planned reductions affecting 3,000 employees.
Portland General Electric reduced staff by 330 positions in July. The broader trend reflects economic pressures, regulatory challenges, and shareholder demands for operational efficiency across energy and telecommunications sectors nationally.
Union Warns of Contractor Cost Increases
IBEW Local 410 emphasizes that replacing skilled internal employees with contractors ultimately increases operational expenses and customer costs. The union notes many field employees are approaching retirement eligibility, creating backfill challenges.
Workforce reduction without qualified internal replacements would force expensive contractor reliance for project management and emergency outages. These costs, union officials argue, will likely appear in future rate increase requests, contradicting BGE’s affordability commitments.
Maryland Public Service Commission Scrutiny Intensifies
The Maryland Public Service Commission grilled BGE executives regarding rising customer complaints and service failures. Commissioner Odogwu Obi Linton expressed skepticism that proposed solutions address immediate problems.
The commission plans issuing directives requiring BGE to implement near-term improvements beyond the six-to-eight-week onboarding timeline. PSC officials criticized BGE’s presentation as lacking immediate action plans while customers face service accessibility crises during winter months.
Office of People’s Counsel Raises Questions
Maryland’s Office of the People’s Counsel expressed frustration that BGE failed to provide requested data including call statistics, internal tracking systems, and wait-time accounting. Advocates questioned whether increased contractor reliance drives excessive costs ultimately passed to ratepayers.
The office raised concerns about whether layoffs represent genuine operational necessity or primarily protect shareholder returns while shifting expenses to customers through rate increases.
Baltimore City Council Demands Accountability
Baltimore City Council has been vocal in opposing BGE rate increases, passing resolutions urging the Public Service Commission to halt planned rate hikes. Council President Zeke Cohen called for greater transparency in rate-making proceedings, raising concerns about information asymmetries between Exelon and public stakeholders.
Local leadership argues infrastructure upgrades should not be funded solely through customer rate increases without demonstrated necessity and public benefit analysis.
Workforce Reduction Impacts Three-Thousand-Plus Employees
BGE employs approximately 3,100 people across Maryland, making it among the 15 largest private employers in the region. Proposed layoffs, potentially affecting 67 or more positions based on union information, represent a notable reduction from this base workforce.
The utility serves Maryland’s Baltimore metropolitan area and surrounding counties, making employment decisions significant for regional labor markets and family financial security during winter months.
Questions Remain on Timeline and Implementation
BGE has not disclosed when layoffs will commence or which specific workstreams face elimination. The company states negotiations with Local 410 continue regarding implementation details. Employees remain in uncertain limbo regarding their job security.
Union officials indicate comprehensive talking points were prepared addressing cost concerns, safety implications, and service reliability impacts, but no official timeline has been announced to affected workers.
Layoffs Symbolize Broader Utility Industry Pressures
The BGE workforce reduction reflects systemic pressures facing regulated utilities. Regulatory constraints on rate recovery, mandates for infrastructure investment, and shareholder demands for profitability create competing pressures.
Cost-cutting measures often translate to workforce reductions rather than executive compensation adjustments or dividend reductions. BGE’s announcement, coupled with service failures and record profits, highlights the tension between utility profitability and customer affordability—a challenge likely to define Maryland energy policy debates.
Winter Energy Crisis Looms for Maryland Families
As temperatures drop across Maryland, BGE faces intensifying scrutiny over workforce cuts during peak heating season. Thousands of families depend on reliable gas service for winter warmth, while others rely on electricity for backup heating.
The timing of layoff announcements—mid-December—raises legitimate concerns about emergency response capacity during extreme weather events. Regulators, unions, and customer advocates are monitoring BGE’s ability to maintain service reliability while operating with reduced internal workforce capacity during critical winter months.
Sources:
“BGE confirms layoffs to workforce.” Fox Baltimore, December 10, 2025.
“BGE to begin layoffs, says it is focusing on ‘operating efficiently and managing costs responsibly.'” CBS Baltimore, December 10, 2025.
“BGE announces employee layoffs to workforce.” WBAL-TV, December 10, 2025.
“Public Service Commission grills BGE over increasing number of customer complaints.” WBAL-TV, December 17, 2025.
“Hundreds of complaints are filed against BGE call center company offers solutions.” WCBM News, December 17, 2025.
“BGE Announces Layoffs as Company Prioritizes Long-Term Stability.” WOLB Baltimore, December 9, 2025.
“Maryland’s Next Generation Energy Act.” Maryland General Assembly, April 2025.
“Exelon Reports Third Quarter 2025 Results.” Exelon Corporation Newsroom, November 3, 2025.