RWE to restructure, shed staff

    RWE to restructure, shed staff

    German power and industrial conglomerate RWE Energie has embarked on a major cost efficiency drive in response to the competition triggered by market liberalization. Measures to be undertaken include restructuring, job losses, and a cooperation deal with VEW Energie.

    The restructuring plans will separate the company`s sales operations from its networks. Out of 12 existing regional suppliers, RWE Energie will restructure to create four regional networks and four distribution regions. The Essen-based company will also cut 2500 jobs from its regional businesses.

    Separately, RWE Energie has also signed a cooperation deal with Dortmund-based VEW energie which will help the company in making cost efficiency improvements.

    RWE has not said exactly what the cost savings will be from restructuring. Its core energy division is facing competitive pressures from the upcoming liberalization and recently announced the departure of Roland Farnung, its controversial head.

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