Vattenfall CEO Magnus Hall says the Swedish utility is to cut costs amounting to around $276m by 2020, in order to facilitate investment aimed at adapting the company to a changing energy system.
Hall said: “Vattenfall has a clear strategic direction and a path for transformation in which we include needed cost reductions to
free up capital for future investments.
“A slim and cost efficient organisation is a prerequisite for profitable growth in the company. Therefore, this kind of initiative is a continuing part of our strategic objective to secure high-performing operations.”
The company said it has identified a need to increase efficiency in staff and support services in “light of a rapidly changing energy landscape”.
The savings have so far only been set in monetary terms but it is “very likely that a reduction in workforce will be an essential part of the solution”, Vattenfall said, although no target has been set for job cuts at this juncture.
“Vattenfall will handle implications for employees in a socially responsible manner and in consultation with workers’ councils and unions,” the company said in a statement.
The company said some efficiency programmes are already ongoing and will be included in the new plans.