German utility Uniper prepares job cuts – sources

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DUESSELDORF, Oct 7 (Businesshala) – German utility Unipar (UN01.DE), which is majority-owned by Finland’s Fortum (FORTUM.HE), is planning far-reaching cuts, two people familiar with the matter said, Adding that employee was currently being informed about the action.

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A labor source said the cuts, which are expected to affect the engineering unit of the energy firm that provides services to power plants, could affect up to 1,000 workers and could be sold to individual units.

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Uniper said a statement would be made during the day, but declined to comment further.

The group has been under pressure to decarbonize due to Germany’s plan to abandon coal as an energy source by 2038, as well as its acquisition by Fortum, which has outlined a path to significantly reduce CO2 emissions.

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Fortum, which owns 76% in Unipar, said last month it could free up additional cash to boost its battle chest by expanding into solar and wind power assets, a sector that has been brimming with utilities- Along with it is becoming increasingly crowded by the big oil companies.

Reporting by Tom Kakenhoff; Writing by Christoph Steitz; Editing by Sabine Volrab

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