EMCC European Monitoring Centre on Change

EDF Energy

Company/Organisation:
EDF Energy

Geographic Location

Country: France

Company

Sector: Utilities
Electricity, gas, steam and air conditioning supply
35 - Electricity, gas, steam and air conditioning supply
Number Employed: 161310
Group: EDF

Employment Effects

Announcement Date: 08-12-2005
Planned Job Reductions min: 6000
Planned Job Reductions max: 6000
Type of Restructuring: Internal restructuring
Foreseen End Date: 31-12-2007
Other Job Reduction Measures: 9000

Additional Information

Employing 161,310 people in 2004, Électricité de France (EDF) is Europe’s largest electricity utility and supplies 22% of the European Union’s power needs. The French group announced plans to cut its workforce in the next two years. According to management, about 6,000 jobs will go by replacing only 'one in three or four' of the 9,000 employees retiring until 2007. This reduction represents about 3.72% of its total workforce. Following the announcement, shares of the state-controlled energy group EDF rose above their issue price of €32 for the first time since the flotation of the company on 21 November 2005. Unions have fiercely protested against what they perceive as a financial project, expressing concerns about capital expenditure underinvestment that might impact on the security of supply of the EU power system.