Eon renewable venture to include 5,000 job losses

Eon renewable venture to include 5,000 job losses

Eon has warned that up to 5,000 jobs will be lost following its merger with renewables company Innogy, across the combined group.

The job cuts, that will see Eon cut 7% of the group’s staff, are part of the company’s ambition to save €600 million to €800 million per year after 2022.

The deal that is set to transform the German energy sector between Eon and Innogy’s controlling shareholder, RWE, was agreed over the weekend and will see Eon shift its focus to power networks and retail customers, while RWE will include renewables in its vast portfolio of generation assets.

Johannes Teyssen, Eon chief executive, said: “What we are presenting to you is one of the most creative design deals in German industrial history and a unique opportunity,” he added: “For Eon, this transaction is an opportunity to achieve our strategic goals within the limits of our balance sheet.”

Rolf Martin Schmitz, chief executive of RWE, said: “We are setting a new stage and creating sustainable prospects by tapping into a further new growth market. In a nutshell, we will turn RWE into one of Europe’s leading power producers.”

Eon’s shares jump 5pc on Tuesday – a similar level to that of Monday, while RWE rose 8pc.

Once the deal is complete, Eon will have 50 million customers, along with a regulated asset base worth €37 billion.

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