Citing a “rapidly changing energy landscape,” European wind developer Vattenfall has decided to cut costs by 2 billion Swedish krona, equaling $250.9 million, in its workforce by 2020.
The Swedish energy company says it must adapt in order to stay competitive. Magnus Hall, president and CEO of Vattenfall, states, “Vattenfall has a clear strategic direction and a path for transformation in which we include needed cost reductions to free up capital for future investments.”
Vattenfall says it has already “shrunk significantly” over the past few years in its current transformation, but staff has not yet been reduced to the same extent. The company has not yet set a target for how many employees will be cut.
Hall continues, “A slim and cost-efficient organization is a prerequisite for profitable growth in the company. Therefore, this kind of initiative is a continuing part of our strategic objective to secure high-performing operations.”