STOCKHOLM (AP) — Swedish power company Vattenfall says it will slash nearly 2,500 jobs, most of them in Germany, in an effort to cut costs by 4.5 billion kronor ($700 million) by the end of 2014.
State-owned Vattenfall says the downsizing will focus on administrative functions, affecting 1,500 employees in Germany, 500 in the Netherlands, 400 in Sweden and 50 in other countries.
In announcing the cuts Wednesday, CEO Oeystein Loeseth blamed low electricity prices, production overcapacity and an oversupply of CO2 emissions allowances in Europe's carbon trading market.
He said: "This new reality requires efforts in further improving our efficiency and strengthening our financial position."
Vattenfall operates nuclear, hydro, coal and renewable energy plants, and supplies electricity to nearly 8 million customers in northern Europe.