DUESSELDORF, Germany, Nov 6 (Reuters) - RWE, Germany’s No.2 utility, will be cutting some 2,500 jobs in its power generating business in Germany over the next few years, a source familiar with the plans said on Wednesday.
The source said RWE would also cut jobs in power stations in Britain and the Netherlands. According to information obtained by Reuters earlier, some 3,400 jobs may be going in total.
An RWE spokespeople declined to comment on the matter, referring to the company’s nine-month results due on Nov. 14 when more details will become available.
RWE, which has been hit hard by a steep drop in wholesale power prices and a boom in renewables that has driven conventional power plants into loss, is seeking to make savings and shed assets.
One of the leading European energy companies in exploration, production, transport and trading, it could cull 10,000 out of 70,000 current jobs overall, analysts estimate.
Its German power production sites employ 14,500.
As a response to falling returns, RWE has been slashing investments and announced planned closures of power plants to turn its business around and lower a 35 billion euro ($47.16 billion) debt pile.
Chief Executive Peter Terium has said savings must exceed an already planned 500 million euros in power generation and there will also be a reorganisation of its electricity sales business.
$1 = 0.7421 euros Reporting by Tom Kaeckenhoff; Writing by Vera Eckert; editing by Jason Neely