Orissa is the first state in India to have undergone reform in the power sector with the Government withdrawing its control. The state government owned integrated Electricity Board which was responsible for generation, transmission and distribution of electricity was unbundled into separate generating, transmitting, distributing and trading companies. The structure and ownership changed. The purpose of this paper is to examine the impact of the reform and privatization on employees. The impact of reform on employees was measured with the help of multiple regression models. The variables represent the parameters that employees are most interested in, and the regression coefficients represent the weights of the corresponding variables. The data were collected using a survey methodology. The impact of reform was observed to be mixed one. Some employees felt benefits while others mentioned negative impact. The study revealed beneficial aspects of reform and areas with no benefits. (C) 2012 Elsevier Ltd. All rights reserved.