Renewable energy project developer, juwi group has announced a major cost cutting and restructuring programme with the expected loss of around 400 jobs, or around 27% of the total workforce.
The private company emphasised that previous amendments of the German Renewable Energy Act (EEG) that virtually stopped the building of utility-scale PV projects and further reforms just announced severely restricted renewable energy development in the country and had already led to a revenue decline of around 30% in 2013, compared to the previous year. Juwi noted that it had generated revenue of around €710 million (US$969 million) in 2013.
“We have to become aware of the fact that the commitment towards and the understanding for the need of climate protection measures has decreased considerably in many of our core markets,” noted Fred Jung and Matthias Willenbacher, founders and CEOs of juwi in a statement. “Over the past 18 years, the juwi group has developed into a successful company within the branch of renewable energies with approximately 1,500 employees.”
Having recruited Roland Berger Strategy Consultants, juwi has set in motion drastic actions to restore the company to a solid foundation, focusing business activities on
project development, EPC and Operations and Maintenance for both PV and wind sectors.
The company said that 250 positions would be lost in Germany with the remaining 150 positions being lost from operations in other European countries as well as in the Americas.
Non-core business activities which were said to include wind energy towers, racking systems as well as the sale of electricity would be halted and the company was seeking a new investor.
Juwi has also restructured its management with the exit of its CFO, Martin Winter and COO, Jochen Magerfleisch, effective immediately (June 30).
The company has recruited Dr. Stefan Gros to the positions of CFO and CRO and has promoted Stephan Hansen to the COO position. Hansen had been the managing director for juwi International.
Due to a well developed project pipeline in both wind and PV, juwi said that it expected similar megawatt deployments in 2014 as in the previous year.