EMCC European Monitoring Centre on Change

Centrica

Company/Organisation:
Centrica

Geographic Location

Country: United Kingdom
Location of affected unit(s): Windsor and other locations

Company

Sector: Utilities
Electricity, gas, steam and air conditioning supply
35.22 - Distribution of gaseous fuels through mains
Number Employed: 20000

Employment Effects

Announcement Date: 11-06-2020
Planned Job Reductions min: 3700
Type of Restructuring: Internal restructuring
Foreseen End Date: 31-12-2020

Additional Information

British gas utility, Centrica announced plans to reduce its UK workforce by an estimated 3,700 jobs. Centrica has proposed to cut 5,000 jobs globally, which equates to around one-fifth of the group’s 27,000 workforce.  The restructuring is designed to hasten a savings target of £2 billion (2.21 billion approx.) one year earlier than originally planned.

In a bid to simplify its organisational structure, around half of the jobs that will be abolished are positions in leadership, management and corporate services, including 20 roles from the senior leadership team, who will leave by the end of August. The remaining job cuts will be finalised by the end of 2020 after formal consultation has concluded. Around 2,500 management roles will be among those being abolished.

The company, Britain’s largest energy provider, made a large financial loss in 2019  (£849 million, €938 million  approx.) and blamed poor results on loss of ground to competitors. A cap placed on energy prices which came into effect at the beginning of January 2019 and a large reduction in gas prices were cited as the main factors contributing to the energy supplier’s trading loss. As it has stakes in Britain’s nuclear power stations, outages at two nuclear power plants also impacted on earnings.

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