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Eneco energy building in Rotterdam.
Eneco energy building in Rotterdam. - Credit: Joeppoulssen / Depositphotos - License: All Rights Reserved
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Monday, 9 December 2024 - 20:10

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Eneco to cut 350 full-time positions in reorganization

Dutch energy supplier Eneco has announced plans to eliminate 350 jobs by March 31, 2026, in response to rising material costs, increased wages, and shifting market conditions. The company emphasized that the reduction will primarily occur through natural attrition, a decrease in external hiring, and cuts to temporary labor.

“We are adjusting our organization to keep costs manageable, including through further digitalization,” said Eneco CEO As Tempelman in a statement. “This will ensure the profitability of our ambitious sustainability investment program.”

Eneco, which currently employs approximately 4,100 people, began reducing its reliance on external contractors last summer and plans to continue those efforts. According to Tempelman, the changes aim to optimize work processes and lower costs without relying heavily on layoffs. The company reiterated its commitment to minimizing redundancies where possible.

These adjustments are part of an internal program initiated in June that explores cost-saving measures and improved efficiency. Eneco has not disclosed specific cost-saving targets tied to the job cuts.

Eneco cited a combination of factors influencing its restructuring, including inflation, rising costs of materials, higher wages, and geopolitical developments affecting global energy markets. Additionally, domestic challenges such as declining demand for heat pumps, slower growth in the electric vehicle market, and stalled development of district heating networks have impacted the company’s outlook.

Despite the workforce reduction, Eneco plans to continue its investments in renewable energy and sustainability initiatives. The company’s One Planet Plan, launched in 2021, aims to achieve climate neutrality by 2035. Future investments will focus on wind and solar parks, battery storage for electricity, smart charging infrastructure, shore power systems, and technologies supporting flexible energy demand.

Eneco stressed that digital transformation will play a critical role in maintaining operational efficiency and enhancing customer service.

Eneco also highlighted the need for supportive political measures to address bottlenecks in the energy transition, including the development of the green hydrogen market. The company urged policymakers to prioritize actions that facilitate sustainable energy solutions in the coming years.

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