TXU Communications announced that it was going through company wide reorganization, and that would mean the elimination of many jobs in Lufkin.
About 30 permanent positions were cut. The layoffs occurred over the several months, beginning in February of 2002. TXU Communications said they had been working hard to avoid any layoffs, but with the slow economy, the reductions were necessary.
Bob Udell, Chief Operating Officer at TXU said, "we saw it actually mid-last year and we've been taking action and efforts to reduce our costs and increase revenue in other areas so as a the last resort we would affect jobs. It's come to that point and we're effecting some across the company."