By Inti Landauro

PARIS--Electricite de France SA (EDF.FR) Thursday said it will reduce its staff headcount at its French utility by 5%, or 3,350 jobs, in 2016-2018 to cut costs amid rising competition and sluggish demand.

The company, which employs 67,000 workers at its French utility, will reduce its payroll by not replacing people leaving the company, the company said in a statement, adding it won't lay off anyone.

EDF, which once held a monopoly on electricity distribution in France, now faces rising competition from rival utilities in a country plagued by slow economic growth.

Including all other units in France and elsewhere in the world, EDF employs 158,000 workers.

-Write to Inti Landauro at inti.landauro@wsj.com

(END) Dow Jones Newswires

January 21, 2016 07:11 ET (12:11 GMT)