Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
EWE, the fifth biggest German energy producer, is to cut 500 of the company's 9,000 German workforce by 2017.
As compulsory redundancies are ruled out until 2020 under an existing agreement, the job reduction shall be implemented by not extending temporary contracts and by early retirements.
The management cited the bad market situation of the company’s core business, the production of electricity and gas, as the main reason for the job reductions. EWE’s profit has decreased by 90 pc in the first half of 2014 compared to the previous year.
The works council announced that they will try to save as many jobs as possible. According to the chairman, the company’s weak commercial situation is also due to management mistakes.
Eurofound (2014), EWE, Internal restructuring in Germany, factsheet number 78166, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/78166.