North Sea operator RWE is to cut more than 6700 jobs across Europe in the next three years after warning it expects profits to fall by almost half next year.
The cuts come on the back of a similar number axed since 2011, bringing the total planned job losses to around 18% of its workforce.
The news comes after fellow European producers E.On and GDF Suex warned the energy industry across the continent faced a crisis due to a boom in renewbales.
RWE said it was looking to save more than £800million over the next four years as it braced for a downturn, with many of its continental power plants unable to cover costs due to the decline on forward elecricity prices.
“We have identified additional measures to be implemented over the next four years, representing a gross volume of EUR 1 billion,” says chief executive Peter Terium.
“Allowing for general cost increases, an earnings potential of at least EUR 500 million is expected to come from these efficiency measures, which should be realised in full and in a sustainable manner from 2017 onwards.”
The company said it expected profits of between £1billion and £1.25billion, down from this year’s expected £2billion.
The company operates the Breagh, Clipper South, Windermere, Topaz and Cavendish gas fields in the North Sea, along with stakes in the West of Shetland prospects.
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