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BKW Group Groupwide cost reduction and workforce measures
Bern (ots) - In October the BKW Group announced a Groupwide productivity enhancement and cost reduction programme with a view to further developing its market position. It has now launched an additional package of measures which, when implemented, will enable BKW to achieve the targeted reduction in controllable costs and ensure the company's economic stability. A planned reduction of around 200 jobs will affect all divisions, including subsidiaries. The job cuts are in addition to the measures already announced and being implemented in the networks area.
In recent months BKW has begun to formulate a Groupwide productivity and cost reduction programme to address the changed market environment and the growing pressure on costs. The aim of this programme is to uphold BKW's profitable positioning even under the current difficult market conditions, and secure the company's competitive capability for the future. In this context, an annual reduction of 15% or around CHF 95 million in controllable costs is targeted. Besides enhancing cost efficiency and increasing productivity, Groupwide adjustments to the workforce are planned. The first decision in this regard was made in the second half of October 2011, and affected the Networks Division (55 jobs shed). Now BKW has adopted a further programme of measures. The planned reduction affects another 200 jobs across all business areas with the exception of Mühleberg nuclear power plant. Taken together with the previously-announced workforce reduction in the networks areas, some 250 jobs are to be shed across the Group. Starting in February 2012, the measures will be implemented largely in the course of next year.
The workforce reduction is necessitated by the adjustments to organisational and process structures within the business divisions with a view to tapping potential synergies and increasing both productivity and competitiveness. To reduce costs, third-party service procurement and interfaces to subsidiaries are being optimised so as to generate closer ties with BKW. The workforce will be reduced by not filling vacancies as well as by natural wastage and redundancies. BKW will support af-fected employees by helping them to seek new jobs and, if necessary, providing support for retraining. The BKW Personnel Commission is involved in the process.
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