Npower owner reports a 15% fall in UK earnings and says cuts are needed to keep competitive
RWE, which owns Npower, has announced another 2,400 job cuts across Europe and reported a 15% fall in UK earnings, despite soaring demand for energy.
Most of the job losses are expected to be in Germany, where RWE is based, but the group was unable to rule out cuts in the UK.
The move comes as it seeks to boost profits in the face of falling power plant margins, competition in the energy sector and the German government’s decision to close half of the country’s nuclear power stations.
RWE had already announced plans earlier this year to slash 5,000 positions and axe a further 3,000 workers through divestments.
Peter Terium, chief executive of RWE, said the cuts were “essential to maintaining the market competitiveness of RWE”.
“But we will be implementing them in a planned and transparent manner in full consultation with employee representatives,” he added.
The group employs more than 12,000 people in the UK, including at a call centre in Newcastle and power stations in Wales, Didcot and Tilbury.
Its UK energy arm Npower, which is one of the big six energy suppliers with 6.5 million customers, saw operating profits slide to £262m in the second quarter.