REpower Systems SE, part of the Suzlon Group, has announced plans to cut up to 750 jobs in an effort to help the company achieve cost savings of 100 million euros this fiscal year.
‘This is a painful but necessary development,’ says Andreas Nauen, CEO of REpower. ‘We plan to keep compulsory redundancies to a minimum."
He adds that REpower will work together with the employee representatives in order to find fair, socially acceptable solutions for those affected by these cuts. The number of enforced redundancies is to be kept as low as possible by means of natural fluctuation, financial incentives for contract termination agreements and expiring fixed-term employment contracts, the company explains.
As part of its plan to realize cost savings, REpower says its central functions will be arranged globally. "This is a pre-requisite for being able to react to market conditions more quickly and with greater flexibility. Only in this way will we remain a reliable partner with products tailored to meet our customers' requirements," Nauen says.
Explaining why REpower must streamline its organization, the CEO says, "The plans I am announcing will allow REpower to better meet today's challenges and prepare for tomorrow's opportunities, particularly in the offshore segment. Whilst the long-term outlook for the sector remains strong, the mid-term outlook is expected to remain uncertain and volatile, and we need to prepare for that."