Wind turbine maker REpower is likely to ditch 750 jobs in a bid to slash costs by €100million. The head of German manufacturer said potential job cuts were “a painful but necessary development.”
Andreas Nauen, CEO of REpower Systems which is part of the Suzlon Group said: “We plan to keep compulsory redundancies to a minimum.”
He added: “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.”
REpower is also preparing for a drop in business because of uncertainty over Germany’s support for renewable energy. The German energy minister has recently put forward plans to trim subsidies for green energy to keep energy bills down.
Marcus Wassenberg, the firm’s chief financial officer told Recharge magazine: “Our forecast for the [coming] fiscal year (2013/14) is for a revenue reduction of 20% that derives from the insecurity in the market.”