Wednesday, 24 January 2018 09:43 GMT

Abu Dhabi energy firm to cut workforce by 16%

(MENAFN - Arab News) Abu Dhabi National Energy Co, or TAQA is planning to reduce its staff in Abu Dhabi office by 16 percent in a cost-cutting drive, it said in a statement. As part of the re-organization, the workforce at the headquarters will fall by 16 percent, reducing the headcount in the corporate center to 189. By cutting jobs, the company hopes to save more than $20 million in a year. "This re-organization is to enhance efficiency. The measures will reduce general and administrative costs by more than $20 million in 2014," company sources added. "As we become a more cohesive international group with greater capacity in Abu Dhabi, we are able to increase efficiency by leveraging our integrated global teams," said CEO Carl Sheldon. In the UAE, TAQA is majority owner of eight power and water plants, which supply almost all of Abu Dhabi's electricity and clean water. TAQA is also helping to diversify the UAE's power and water sources with projects including water desalination, waste-to-energy, solar power, energy storage and energy efficiency. "We constantly review our cost base and monitor performance to ensure we deliver efficiently on our vision," Carl Sheldon said. In the eight years since it was founded through the privatization of Abu Dhabi's power and water fleet, TAQA has evolved into an operator of large-scale energy infrastructure in 11 countries including Ghana, India, Iraq, Morocco, the Netherlands, North America and the UK. TAQA earlier announced two phases of re-organization in the North American oil and gas business. This delivered improved performance from a simpler structure and $28 million in annual general and administrative savings. TAQA also continues to optimize its portfolio to focus on core activities where it has a competitive advantage. The company agreed to sell its stake in the Dutch pipeline business, NGT, in November for $240 million and is in the process of raising $181 million through the sale of 15 percent of its Moroccan power business in a stock market listing. Arab News separately learned that Abu Dhabi has plans to reduce government subsidy for many companies in the capital by 2014. "Many government-owned firms will start behaving commercially by next year," sources familiar with the matter told Arab News. There were reports that Abu Dhabi's First Gulf Bank has plans to reduce nearly 300 jobs, which is 10 percent of its workforce as part of a restructuring. German engineering giant Siemens had announced their plans to slash 15,000 positions worldwide by late next year as part of a cost-cutting drive, including 5,000 in its home country.

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