E.ON AG plans to cut 11 000 from its global workforce and slash dividend payments after a first-half profit plunged because of the government’s decision to shutdown all nuclear reactors by 2022 says the German  utility.

Adjusted net income, the profit gauge the company uses to calculate its dividend, fell to Euro933m ($1.29bn) from Euro3.26bn a year earlier, Dusseldorf- based EON said today.

The company, which said it will cut as many as 11,000 jobs, reported its first quarterly loss in 10 years of Euro382m.

A public backlash following the meltdowns and radiation escapes at Japan’s Fukushima-Daiichi nuclear complex drove Germany to announce plans to close all its reactors.

Even before the costs of shutting reactors, E.ON and RWE, the country’s two largest nuclear operators, were facing a tax on atomic power intended to net the government about Euro2.3bn to trim the budget deficit.

The results were “mainly driven by significantly higher charges due to the nuclear exit,” Bernhard Jeggle, an analyst at Landesbank Baden-Wurttemberg, said in a note to clients. “As a consequence of political interventions and extremely difficult economic situation, E.ON cut the outlook.”

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