RWE to cut 8000 Jobs in coming years image

RWE AG, the German electric power and natural gas public utility company, plans to cut thousands of jobs over the next few years, according to media reports. The company wants to reduce its workforce by around 8,000 people in coming years, German daily newspaper Rheinische Post reported Saturday.

“There will be job cuts,” the spokesman told Reuters, without giving a specific number. He said the company was working with the trade unions to implement the job cuts.

The company said in August it planned to divest assets worth 11 billion euros ($14.8 billion) by the end of 2013.

It aims to cut costs by 1.5 billion euros next year as it comes to grips with Germany’s decision to phase out nuclear power by 2022.

RWE’s main domestic competitor E.ON AG is proceeding with a comprehensive reorganization of its German and international business and has said these measures could cost around 11,000 jobs.

RWE will cut jobs as a result of closing its Biblis nuclear power plant and replacing coal-fired plants with ones that require fewer staff. It is also restructuring in Britain and eastern Europe.

A spokesman for RWE declined to comment on details of the considered measures, but he reconfirmed that the company is discussing several options with labor unions.

Back in 2008, Daimler AG and German utility RWE announced a partnership for what they are calling the largest electric car field test in the world.

Daimler will provide around 100 electric cars from Mercedes-Benz and smart as well as the vehicle service and RWE will install and operate 500 charging points in customer’s homes, workplaces, public parking areas and through agreements with businesses such as shopping centers.

The initiative is also being supported by the German federal government.