07 Mar Germany’s RWE to cut 2,500 jobs in Britain
Npower, a British subsidiary of Germany’s RWE (ETR: RWE), plans to cut thousands of jobs this week after financial and customer issues.
One of Britain’s biggest energy providers, which employs 11,500 people, is struggling as RWE faces its largest disaster in 118 years. It has encountered low wholesale power results, large subjection to gas and coal and a small appearance in renewable energy.
The firm’s shares have decreased by more than half in the past year.
In the first nine months of this year, the company lost about 200,000 of its British customers due to strong competition. Npower has 5.4 million customers now but because of billing process problems, certain consumers cannot be charged.
In the January-November period, the firm fluctuated from an operating loss of US$73 million, compared to almost a $100 million gain the year prior.
After overcharging customers and inappropriately dealing with customer’s concerns, the company was fined $37 million in December. This has been the largest fine ever for a British power facility.
RWE said it would return to profit no earlier than 2017.