Romania’s Oltenia Energy Complex starts mass layoffs
Around 600 employees at the Oltenia Energy Complex in southern Romania submitted unemployment claims after their fixed-term employment contracts ended at the beginning of April.
About 1,400 employees whose employment contracts were concluded for a fixed term have lost their jobs on April 1. They will be followed by another 300 whose contracts expire on May 1. Around 1,000 former employees are expected to file for unemployment benefits in Gorj, with the rest in Mehedinți and Dolj counties. Authorities in Gorj County are set to organize a job fair to address the situation.
The employees were not given compensatory salaries after being let go. At the end of March, a delegation from the Oltenia Energy Complex miners’ union protested in front of the government headquarters in Bucharest. The executive maintained that compensatory salaries cannot be granted to employees whose employment contracts end, and that, according to the legislation, these contracts cannot be renewed either.
“A few years ago, Romania undertook certain commitments to the European Commission for which it received money. These commitments and the economic situation of Oltenia Energy Complex have led to the measures we are seeing now, including in the company’s restructuring plan,” stated prime minister Ilie Bolojan, cited by Profit.ro.
The complex ended 2025 with a loss of roughly RON 1 billion, while costs generated by the purchase of CO₂ emission certificates amounted to over RON 2 billion, representing over a third of the total expenses.
In this context, the Reorganization, Restructuring, and Financial Recovery Plan was adopted, which includes measures to reduce expenses, both operational and staff reductions, in line with the updated schedule regarding the decarbonization of the energy sector and the closure of coal-based capacities.
“According to this plan, the renewal of individual fixed-term employment contracts that reach their expiration date on April 1, 2026, respectively, May 1, 2026, will not be possible, and the granting of compensatory salary rights for employees in such situations is not provided for by labor legislation,” the government transmitted.
CE Oltenia is a Romanian state-owned enterprise active in the field of lignite mining and electricity generation. It is one of the main employers (over 8,000 employees) in a region with unemployment rates consistently above the national average.
(Photo source: Complexul Energetic Oltenia on Facebook)
