EMCC European Monitoring Centre on Change

Npower

Company/Organisation:
Npower

Geographic Location

Country: United Kingdom

Company

Sector: Utilities
Electricity, gas, steam and air conditioning supply
35 - Electricity, gas, steam and air conditioning supply
Number Employed: 11500
Group: RWE

Employment Effects

Announcement Date: 06-03-2016
Planned Job Reductions min: 2400
Planned Job Reductions max: 2400
Type of Restructuring: Internal restructuring
Employment Effect Start: 08-03-2016
Foreseen End Date: 31-12-2018

Additional Information

United Kingdom energy supplier Npower has announced that it will reduce its workforce by 2,400 by 2018. The job losses will include directly employed staff as well as contractors. The UK operations are head-quartered in Swindon. Most of its UK employees are based in the Midlands, north east of England and in Yorkshire. It has been reported that sales and marketing roles will experience the largest cuts. The German-owned company has said that there will be no job losses at any of its UK power stations.

The company reported an annual loss of £106 million (approx. €137 million) in 2015. The company has experienced difficulties with their billing system and lost between 6 to 7 per cent of UK energy customers in 2015. This has meant Npower moved from the second to sixth largest energy supplier in the UK. Related to the problems with their billing system, in December 2015, the company was ordered to pay £26 million (approx. €33.6 million) to customers for sending out inaccurate bills and for failure to properly handle complaints.

Prior to this announcement, Npower employed 11,500 workers, of which 7,500 were directly employed. In 2014, several offices in the United Kingdom were closed with some customer service work either outsourced or offshored to India (see earlier factsheet ).