Eesti Energia plans to cut about 10% of positions in Estonia — ERR News

Estonian state-owned energy group Eesti Energia plans to begin preliminary consultations with employees and their representatives on collective redundancies on November 5. The initial plan calls for eliminating about 10% of positions in the group, ERR News reports.

Which positions are planned to be eliminated

According to Eesti Energia CEO Andrus Dureiko, the final number of cuts will be determined after consultations are completed. The company intends to eliminate 390 positions at Enefit Industry, Enefit Power and Eesti Energia AS. Additional cuts are also planned at Enefit OÜ and Elektrilevi.

The restructuring will primarily affect non-critical support positions in production units and support functions in the group’s central structures. The company said the changes would not affect service quality, the reliability of electricity supply, or continuity of production. Facility operators at oil production sites and power plants will also not be affected by the planned restructuring.

More current news is available on the UA.News Telegram channel Telegram.

Reasons and financial indicators

Eesti Energia explained the need for further changes by the necessity of aligning costs with revenue potential and improving operational efficiency amid an uncertain energy market. The decision is being made despite strong financial results for the first nine months of the year following previous structural changes.

The group’s revenue for nine months rose by 12% year-on-year to €1.33 billion. EBITDA increased by 7% to €235 million, while net profit grew by 36% to €42 million. In the third quarter, revenue increased by 38% to €389 million, EBITDA reached €60 million, and net profit amounted to nearly €2 million.

Dureiko said the company plans to support employees throughout the process, including by reorganizing work where possible, explaining available measures and compensation, and providing career counseling.