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Alpiq announces details of job cuts in Switzerland

Following completion of the consultation process with the Personnel Committee, Alpiq today announces details of the job cuts in Switzerland which was communicated at the beginning of November as part of the comprehensive restructuring programme. The company plans to shed 170 jobs in Switzerland, 130 of which in the form of redundancies. This move affects in particular the energy trading area and staff as well as support functions. In support of those affected, a severance plan has been drawn up for which CHF 12.2 million is reserved.

Due to the sustained change in framework and market conditions and the resultant marked deterioration in earning performance, Alpiq announced a comprehensive restructuring programme on 4 November 2011 along with plans to shed 450 jobs. The company has now drawn up detailed plans for Switzerland and discussed them with the responsible Personnel Committee. As far as jobs abroad are concerned, the exact figures are dependent on the outcome of current negotiations for the disposal of various units. The workforce reduction will make a substantial contribution to cost savings in the region of CHF 100 million.

As part of its restructuring programme, Alpiq will shed 170 of the approximately 1,000 jobs in the Energy Segment in Switzerland. This will entail 130 redundancies. Due to the move to streamline the organisation and focus energy trading on self-generated energy, the plans affect in particular staff and support functions as well as the energy trading area, and hence the Olten and Lausanne offices (90 and 40 redundancies respectively). Although half the redundancies will come into force only in the course of this year, those affected will be notified in January. The job cuts do not affect the 3,800-strong workforce of the Alpiq InTec Group, which is active across Switzerland in the fields of building technology, facility management, transport technology and energy transmission.

A severance plan is being drawn up for employees affected by the job cuts. The plan focuses in particular on providing support to employees in finding a new job, termination benefits indexed to age and length of service, a retirement option and an extension of the notice period for termination of employment. CHF 12.2 million is reserved for the severance plan.