Germany’s RWE to cut one in three jobs in $2.9 bln coal exit deal

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RWE, Germany’s biggest power producer, will cut about 6,000 jobs, or nearly a third of its current workforce, by 2030 as the country moves to phase out brown coal as an energy source, the company said on Thursday.

Germany’s exit from the coal industry marks the second major upheaval for RWE in as many years following the breakup of the company’s former subsidiary Innogy with peer E.ON.

It also accelerates RWE’s transformation into a pure renewables group, which – along with its low valuation – could turn it into a takeover target, Goldman Sachs said last week, according to Reuters.

RWE said it would receive 2.6 billion euros ($2.9 billion) in compensation from the government over 15 years to soften the blow to its business.

However, this was less than the 3.5 billion euro hit it estimated it would take, even excluding the expected loss of profits, it added.

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