Global energy company Uniper has announced plans to fundamentally restructure its Engineering business after conducting a strategic review, a move that will result in 1,100 job cuts.
The review determined that despite achieving some success, the stand-alone Engineering business in the current setup won’t meet Uniper’s strategic and financial goals.
The plan will see the company focus on Uniper’s own asset operation and its growth priorities of decarbonisation and green customer solutions. Customer business will concentrate on hydrogen, renewables, Industrial Customer Solutions (ICS), and net-zero solutions.
According to Uniper, service business in the conventional sector will be discontinued and limited to engineering services for nuclear facilities.
Uniper COO David Bryson: “We are making these decisions with all due respect for the affected employees’ performance and in the awareness that they will be accompanied by far-reaching individual consequences and personal changes.
“We, the Uniper Board of Management, and the management teams of the affected units will ensure, in close cooperation with co-determination, that a fair process is set up to achieve these necessary changes whilst avoiding hardships where possible. However, we are taking these steps in order to realign engineering competencies for a sustainable future within Uniper. In this way, we are following our decarbonization strategy, in the interests of our own assets and our customers.”
Currently, the Engineering business provides services both to Uniper’s own fleet and to Uniper customers, across a range of power generation technologies. The business consists of several legal entities, with a total of about 1,100 employees, mainly located in Germany and the UK.
Uniper’s plans will see a significant reduction in employees, as well as divestment of individual business activities.
All ongoing projects will be finalized and closed out as contractually agreed, and customers will be individually approached in due course about the potential impact of the plans on existing co-operations.
Steps to get the restructuring process underway will begin in the first quarter of 2022.