Vattenfall to Lay Off 1500 Employees

Vattenfall is planning to terminate approximately 1,500 full-time positions in the next phase of the previously announced cost-saving program.

Under the SEK 2 billion (around EUR 199 million) program, about 600 employees will lose their jobs in Sweden, 600 in Germany, 275 in the Netherlands and 25 in other countries where Vattenfall has operations.

Ongoing efficiency improvement programs, such as the previously announced outsourcing of certain functions, are included in the planned overall reduction, involving more than 500 full-time positions out of 1,500.

The implications for employees will be handled in consultation with the workers’ councils and unions, Vattenfall said.

In recent years Vattenfall has reduced considerably in size, mainly as a result of the sale of the German lignite operations, the company said, emphasizing that the staff functions, on the other hand, have not been reduced to the same extent.

“It’s natural, and an important part of our strategy to constantly review our costs in order to be efficient and increase the room for new investments. The fact that we now show a positive financial result doesn’t mean that we can rest on our laurels. On the contrary, we need to constantly improve in order to continue to be profitable and to grow,” said Magnus Hall, Vattenfall’s CEO.

“Vattenfall is undergoing major changes. At the same time, climate change and a constantly changing energy landscape requires us to be able to adapt quickly to new circumstances and have modern solutions. This means that our organisation has to be efficient and competitive for the future.”

In September last year, Vattenfall announced the two billion cost-saving program in order to maintain competitiveness and increase room for new investments and business initiatives. The program is planned to be implemented by 2020.