Alabama Central Alabama Water layoffs vs. long-term losses: what the numbers reveal
Central Alabama Water in alabama has moved to cut hundreds of funded positions, saying the step is needed to avoid a 10% rate increase. Less than 48 hours earlier, a financial filing put new numbers on a different strain: more than half the water it treats is not generating revenue. Comparing the job cuts to those operational losses clarifies where the utility is trying to find savings—and where the pressure persists.
Central Alabama Water’s March 13 reduction in force in Birmingham
On Friday, March 13, Central Alabama Water (CAW), described as Alabama’s largest water utility, laid off more than 130 employees in Birmingham. The utility fired 135 employees, representing 23% of its workforce, and also eliminated 76 vacant positions. Together, CAW characterized the move as a reduction of 211 funded positions, with all divisions impacted.
After these actions, CAW said it will employ 449 people. In its statement, the utility said it believes the reorganization will save $20. 1 million per year in labor-related expenses. CAW framed the decision as necessary to maintain “financial viability” and said it was aimed at avoiding a 10% rate increase.
For some affected workers, the announcement immediately moved beyond internal budgeting. Several of the employees fired Friday held a press conference Friday afternoon. Cassandra Patterson said she was called into a meeting Friday morning and told she had to retire, adding that she would stand with the employees. Patterson also said she was told she has until April 27 to sign her severance papers.
CAW’s financial filing: 53% water losses and a 354% bill increase since 2001
The reduction in force landed right after CAW’s latest financial filing disclosed a separate set of pressures. The filing said the utility is losing more than 53% of the water it treats to leaks or unbilled customers. That figure sits alongside another long-run comparison embedded in the filing: customers using 6 CCF of water per month—described as the “average” customer in the utility’s modeling—now pay 354% more than they did in 2001, or four times the national rate of inflation.
The filing also reflects institutional history. For the majority of that timespan, the utility was known as the Birmingham Water Works Board. CAW’s leadership described its “enabling legislation” as requiring it to take a markedly different course from that predecessor organization, with the stated goal of reversing financial trends established over many years.
Alabama’s immediate savings vs. structural leakage: a side-by-side comparison
Placed side by side, the layoffs and the filing’s operational metrics describe two different levers: cutting labor costs quickly versus addressing the scale of water that does not translate into revenue. The comparison does not establish that one action replaces the other; it shows that CAW is pursuing a near-term financial response while disclosing a longer-term operational gap.
| Measure | Workforce action | Financial filing / system metric |
|---|---|---|
| Scale of change | 135 employees fired; 76 vacant positions eliminated | More than 53% of treated water lost to leaks or unbilled customers |
| Share / comparison point | 23% of CAW’s workforce (as stated) | Average customer modeled at 6 CCF per month |
| Stated outcome | $20. 1 million per year in labor-related savings | 354% higher average customer bill than in 2001; four times inflation |
| Time framing | Action taken Friday, March 13 | Long-run comparison from 2001 to the present filing |
Analysis: The job cuts, by CAW’s own framing, target cost containment and rate pressure in the near term—explicitly tied to avoiding a 10% rate increase. Yet the filing’s loss figure, more than 53% of treated water, points to a cost-and-revenue problem that a staffing reduction alone cannot directly resolve, because it describes water that never becomes billed consumption.
CAW’s CEO, Jeffrey Thompson, said the plan followed months of deliberation and analysis of immediate and future needs. He also told the CAW board in December that he and the senior management team would bring an amended budget plan for 2026 in March, warning it would likely include significant changes. The board is set to consider that amended budget next Friday, March 20.
The comparison establishes a clear finding: CAW is prioritizing immediate labor-cost savings while publicly acknowledging that the utility’s biggest disclosed operational strain is the volume of treated water that is lost or unbilled. The next test of that balance comes when the CAW board considers the amended 2026 budget on March 20. If Central Alabama Water maintains the goal of avoiding a 10% rate increase while losses remain above 53%, the comparison suggests the utility will face sustained pressure to pair cost cuts with measurable changes tied to leaks and unbilled consumption.
