Share

German power supplier slashes jobs

Frankfurt - RWE, Germany's second biggest power supplier, said Thursday it plans to axe a further 6 700 jobs by 2016 in the face of an anticipated steep drop in profitability.

RWE, which employs a total workforce of 67 300, has already ear-marked 10 000 jobs to be cut.

The new cuts will primarily be made in Germany, Britain and eastern Europe, a spokesman said.

ARD public television suggested on its website that 4 700 more jobs faced the chop in Germany alone.

Earlier, RWE had said in its third quarter report that it had identified additional cost-cutting measures worth around $1.35bn over the next four years, without elaborating further.

"We are facing difficult times and RWE cannot simply continue to do 'business' as usual," said chief executive Peter Terium.

"What is also certain is that everyone in our company will make a contribution to safeguarding RWE's financial power over the long term. This involves questioning processes and structures from the ground up, reducing our factor costs and shedding whatever we do not need in order to continue running our business successfully," Terium wrote in a letter to shareholders.

RWE said it expects a sharp drop in earnings next year after nine-month figures came in line with expectations.

"The group's reduced earnings power, primarily in conventional electricity generation, will lead to a marked decline in the result for 2014," it said.

Net profit was projected to fall to 1.3-1.5 billion euros in 2014 from an anticipated 2.4 billion euros this year.

Underlying or operating profit was expected to fall to €4.5 to 4.9bn from an estimated €5.9bn in 2013.

RWE said that "despite a still difficult market environment, the operating profit for the first three quarters of 2013 was more or less stable at €4.6bn, while net profit increased slightly to €1.9bn."

Nine month revenues also rose, expanding by 4.0% to €39.9bn.

"Here, we primarily benefited from increased gas sales due to weather conditions," RWE said.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders