EDF Freezes Hiring Amid Strikes
Electricite de France SA (EDF) has announced a hiring freeze as strikes take a toll on output and earnings. The French energy giant said it will not hire any new employees until further notice, as it seeks to reduce costs and protect its financial position.
Strikes Impacting Output and Earnings
The hiring freeze comes as EDF faces a series of strikes by workers protesting the company’s plans to cut jobs and reduce wages. The strikes have had a significant impact on the company’s output and earnings, with production falling by nearly 10 percent in the first quarter of 2023.
The strikes have also had a negative impact on the company’s finances. EDF reported a net loss of €1.2 billion in the first quarter of 2023, compared to a net profit of €1.3 billion in the same period last year.
Cost-Cutting Measures
In response to the strikes, EDF has implemented a number of cost-cutting measures. The company has reduced its workforce by more than 5,000 employees since the start of the year, and has frozen hiring until further notice.
The company has also announced plans to reduce its capital expenditure by €2 billion over the next two years. This will include a reduction in investments in renewable energy projects, as well as a reduction in the number of new power plants it plans to build.
Negotiations with Unions
EDF is also in negotiations with unions to try and reach an agreement on the job cuts and wage reductions. The company has offered to reduce the number of job cuts by half, and to increase wages for some employees.
However, the unions have rejected the offer, arguing that the proposed cuts are too deep and that the wage increases are not enough. The unions have also called for the company to invest more in renewable energy projects, and to create more jobs in the sector.
Impact on Share Price
The strikes and cost-cutting measures have had a significant impact on EDF’s share price. The company’s shares have fallen by more than 20 percent since the start of the year, and are now trading at their lowest level since 2016.
Outlook
It remains to be seen how the negotiations between EDF and the unions will play out. If an agreement is not reached, the company could face further strikes and a further decline in its share price.
In the meantime, EDF will continue to focus on reducing costs and protecting its financial position. The hiring freeze is likely to remain in place until the company is able to reach an agreement with the unions.