Thermal electricity producer Complexul Energetic Oltenia will lay off 2,100 employees from June 1 by year-end, according to a Government Decision adopted last week.

The state-owned company, which now has 18,424 employees, will lay off another 1,000 in the next three years.

Each fired employee will receive some RON 6,000 (EUR 1,348), the equivalent of two net average salaries. The total compensation payments amount to EUR 2.8 million, reports local Economica.net. The layoffs are part of a restructuring plan.

In February, the International Monetary Fund, the World Bank and European Commission have also asked the Government to massively and radically restructure Romania’s two largest thermal electricity producers, Complexul Energetic Oltenia and Complexul Energetic Hunedoara.

The Government, however, won’t accept measures that would lead to the disappearance of this sector, essential to the country’s energy security and the economic and social development of the Gorj and Hunedoara regions, said Prime Minister Victor Ponta.

Complexul Energetic Oltenia produces up to 30% of Romania’s electricity, in three lignite-powered thermal plants.

editor@romania-insider.com