(RALEIGH) -- Progress Energy told it's Raleigh employees on Thursday that between 700 and 1,300 positions at it's downtown Raleigh headquarters will either be eliminated or relocated to Charlotte. The move is part of a merger between Progress Energy and Charlotte-based Duke Energy that, upon receiving final approval, will create the largest utility provider in the U.S.

Progress Energy Spokesman, Michael Hughes, says corporate functions are being consolidated to Duke Energy's corporate headquarters in Charlotte.

"Departments such as corporate communication, accounting, treasury, legal, human resources ... those kinds of support positions [will be relocated]."

"[Raleigh] is not the winner in that transaction," says Raleigh Mayor Charles Meeker.

Downsizing Raleigh's operation will consist of employees accepting voluntary buy-outs, layoffs and retirements. Other losses to the Raleigh headquarters will take form with employees relocating to Charlotte in order to keep their jobs.

Red Hat could fill the forthcoming void of the outgoing utility company. Last week, the Raleigh-based software giant announced it would move 600 employees from the N.C. State Centennial Campus to downtown Raleigh. Red Hat's relocation has them taking up the same office space that Progress Energy plans to vacate.  And that, says Meeker, is a win.

"With Red Hat announcing it's likely coming downtown, we'll see roughly a similar number of people coming in over the next few months."

Red Hat also plans to rename the building.

Progress Energy says they are working to minimize the job losses by eliminating positions that are already vacant; the positions simply will not be filled. The $35 billion dollar merger still needs approval by state and federal regulators.