RWE performs internal surgery in response to profit drop

Germany’s RWE is committing to internal restructuring in a bid to adapt to the changed circumstances that have led to a consistent profit drop in recent years.

The company’s struggles in the electricity generation space is forcing RWE to merge its subsidiaries according to a report by the Rheinische Post.
Peter Terium
A spokeswoman told the newspaper on Saturday that job losses were not part of the plan, but the focus is now on creating a simpler structure,

The report states that the simpler structures would either be a merger of all the company's subsidiaries into one company, or a complete amalgamation with the parent company.

The RWE group, led by Peter Terium (pictured) covers 100 companies, many of which have their own management and boards. A merger should result in a reduction of the high cost of running this level of administration. Given the falling profits from power stations, the parent could rely in the future on the more manageable and stable earnings from the grid, electricity distribution and the increasingly lucrative green energy sector.

 RWE's rival Eon has already made the switch to these three earning streams and has split off



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