2023-09-06 03:05:00
The energy giant Wintershall Dea modifies its corporate structure. In a few months, the company’s board of directors will be made up of three members. It will cut 500 jobs, of which 300 are in Germany. At the same time, it is advancing in its exit from Russia after the invasion of Ukraine. The firm projects annual cost savings of 200 million euros (about 214 million dollars).
The company seeks to reduce administrative costs and “further consolidate its strategic orientation.” «We have adapted our corporate strategy to the challenges of the energy sector and to the already decided exit from Russia, and we are focusing our organizational structure accordinglyexplained Mario Mehren, CEO of Wintershall Dea.
Within a few months, the Wintershall Dea Executive Board It will consist of only three members: the Chairman of the Executive Board and CEO, Mario Mehrenthe Director of Operations, Dawn Summers and the Financial Director, Paul Smith.
Board member Hugo Dijkgraaf, Wintershall Dea’s Chief Technology Officer (CTO), will leave the company on November 30, 2023. His areas of responsibility will be transferred to the other departments of the Board. Thilo Wieland, board member responsible for the Russian, Latin American and Transport regions, already left the company.
The company will reduce its administrative costs through the planned change in the organizational structure. Total, They plan to save around 200 million euros per year, half of them through staff cuts. In detail, 500 jobs will be eliminated, of which about 300 will be in Germany.
“We are adjusting our operating model and reinforcing operational activities in our international business units in particular. To do this, we have to take the difficult step of reducing our teams in Germany,” Mehren stressed. They assured that job cuts will be made in the most socially responsible way possible.
Wintershall Dea will create a provision of 225 million euros in the third quarter of 2023 for the execution of restructuring plans. At the same time, Wintershall Dea’s international business units will be restructured. The activities in Algeria, Egypt, Libya and the United Arab Emirates will continue under a joint business unit for the MENA region.
The firm announced that local offices in Cairo, Abu Dhabi and Tripoli will remain. In future, Wintershall Dea’s sole administrative headquarters will be in Kassel, Germany, where it has been located for almost 70 years. Since the Wintershall and DEA merger in 2019, lThe company maintains two offices in Kassel and in Hamburg.
Besides, the company is still working on its complete withdrawal from Russia. First, the international E&P business and domestic production will be legally separated, as well as “carbon and hydrogen management activities, from all joint ventures with Russian interests,” they warned.
This also includes shares in joint ventures in Russia, the shares in Wintershall AG (51% share) in Libya and Wintershall Noordzee BV (50% share) in the Netherlands. The stakes in Nord Stream AG (15.5% stake) are added.
“Our decision is clear: we left Russia. The legal separation of our international business from Russian holdings for this purpose is a further step,” Mehren remarked. The legal separation will be completed by mid-2024.
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