RWE considers shedding 3,400 jobs

Germany‘s biggest power producer is looking to rationalise the workforce at its power unit and may shed as many as 3,400 employees.

Bloomberg reports that persons close to the management estimate 2,300 jobs will be lost in Germany, with 900 and 200 jobs lost in the UK and Netherlands respectively.

Annett Urbaczka, a spokeswoman at Essen-based RWE, confirmed that staff at the Generation SE unit will be reduced, while declining to provide a number.

RWE is reeling from the ongoing transition to renewable energy in Germany and the continent at large. Coupled with the weak electricity demand throughout recession-hit Europe, the company has seen its gas and coal-fired businesses suffer significant losses.

RWE said in August it will shut 3,100 MW of capacity in Germany and the Netherlands, about 7 per cent of its total in northern Europe, after operating profit from conventional power generation fell 62 per cent in the first six months of 2013.

According to the source referred to in Bloomberg, RWE’s Generation unit’s NEO cost savings program will be increased to more than the previously stated $676m as unfavourable market conditions continue.

For more European power generation news

No posts to display