RWE to shed jobs across Europe in cost saving programme

• 10 years ago (2013-11-08)
• Junior Isles

Europe 1061

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Germany's second largest utility, RWE, will be cutting jobs across its European generation business over the next few years, according to media reports.

According to reports 2500 jobs in Germany are liable to be cut, with further lay-offs in the UK and the Netherlands meaning the potential for 3400 job losses in total.

The plans are a response to declining energy demand in Europe conjoined with loss making power plants across the region, and falling wholesale power prices, forcing RWE and its competitors E.ON and EnBW to cut costs and sell assets.

RWE has declined to comment on reports, stating that more details will be available with the company's nine-month results, due on Nov 14th.

German business daily Handelsblatt has reported that RWE is additionally planning to halve the number of employees at its renewable energy unit Innogy, currently employing 1500 workers.

Innogy spokespeople confirmed there was a restructuring programme under-way, but insisted that those cut from the unit would continue to work in other parts of RWE.

Some industry analysts are predicting that RWE could cull 10 000 out of 70 000 current staff over the entire of its saving and restructuring programme, aimed at reducing its €35 billion ($47.16 billion) debt burden.

Chief Executive Peter Terium has said savings go further than the already planned €500 million from power generation and that its electricity sales business will be reorganised.