For Immediate Release: Friday, March 13, 2026
BIRMINGHAM – Central Alabama Water (CAW) today implemented a corporate reorganization to ensure the utility’s future financial stability.
Effective today, 135 employees representing 23% of CAW’s workforce have been part of a reduction in force. Additionally, 76 vacant, funded positions have been eliminated for a total reduction of 211 funded positions. All divisions were impacted by the layoffs. After today’s actions, CAW will employ 449 people. Moving forward, this reorganization is estimated to save the utility approximately $20.1 million per year in labor-related expenses.
“This was an extremely difficult decision, but it was absolutely necessary to maintain the organization’s financial viability,” CEO Jeffrey F. Thompson said. “We developed this plan after months of deliberation, careful analysis and assessing both the utility’s immediate and future needs. This reorganization has obviously impacted the lives of these employees and their families. I greatly appreciate the significant efforts that each employee made to serve our customers.”
Both leaders and human resources advisors are meeting with affected employees to discuss the reorganization process and the terms of their severance.
In an effort to avoid increasing rates, CAW needs to reduce both its capital and operating expenditures. Without taking these actions, CAW would be forced to implement a substantial rate increase of approximately 10%. Several other factors necessitated the reorganization.
- Alabama Code §11-50-300.06(a) requires CAW to operate the system efficiently and exclusively for the benefit of its customers. Staffing levels must reflect what is necessary to effectively operate the system. This reorganization brings CAW’s staffing levels in line with peer water utilities of similar size and scope.
- The history leading to the utility’s current financial condition is detailed in CAW’s Voluntary Notice filed Wednesday to MSRB’s EMMA System. Click here to view the press release. This reorganization and associated reduction in force demonstrates that management is taking these concerns very seriously and is making changes to improve the utility’s financial standing. The revised 2026 budget is scheduled to be presented to the Board of Directors March 20.
“Our enabling legislation makes it clear that CAW must take a markedly different course from our predecessor organization,” Thompson said. “Our customers are counting on us to take the steps necessary to reverse financial trends established over many years and to emerge stronger and better equipped to provide the world-class service they deserve.”
Payment Modernization
As part of the reorganization, CAW’s physical payment center, like those of many other utilities, is closed. Customers are strongly encouraged to establish service, pay bills and handle other matters via CAW’s new secure website, caw-al.gov. Those who wish to make payments in-person may conveniently utilize any local Walmart’s Money Center. Customers can pay online without incurring any fees simply by logging in to their account and connecting their checking account. Click here for more information about payment options.
Cahaba Museum & Conference Center update
The Cahaba Museum & Conference Center will temporarily close as part of the reorganization. CAW will reach out to those who have events scheduled.
About Central Alabama Water
Central Alabama Water serves customers in Jefferson, Shelby, St. Clair, Blount and Walker counties. It operates four water treatment facilities and maintains more than 4,150 miles of water mains in its distribution network. Please visit caw-al.gov for more information.
