Nuclear and renewable energy major Areva has made announcement about a huge transformation plan after its net loss increased to 4.8 billion euros.

According to Areva, it is going to sell assets, cut costs, decrease capital expenditure and also start discussions with unions about feasible layoffs.

"The scale of the net loss for 2014 illustrates the twofold challenge confronting Areva: continuing stagnation of the nuclear operations, lack of competitiveness and difficulties in managing the risks inherent in large projects”, said Chief Executive Philippe Knoche.

Philippe Knoche is the third CEO to run Areva in four years and he took place of Luc Oursel. In last October Oursel took leave and died in December. According to Areva, it is going to present a three-year financing plan.

According to the company, it is planning to present the plan before the publication of its half-year results. The company said that it is going to cut cost by EUR1 billion by 2017 and also start discussion with unions as soon as possible. Capital expenditure will also be reduced by the company.

Capital expenditure will be decreased to below EUR3 billion between 2015 and 2017.

The French government owns over 85% of Areva and it is the fourth consecutive net loss posted by the company. It has been losing billions of euros on the building of a recently designed nuclear reactor in Olkiluoto. Olkiluoto has ability to power 1.5 million homes, and designed to resist a 9/11-style direct hit by a commercial airliner. New chief executive of Areva Knoche promised to simplify and streamline the group's operations.