BRITISH Gas will cut 5,000 jobs partly due to the impact of the coronavirus pandemic.
The company’s owner Centrica says the cuts will be made under restructuring plans to make the global business “less bureaucratic”.
Centrica employs around 47,000 workers globally, with around 20,000 based in the UK.
Around half of the current 40-strong senior leadership team will leave the company by the end of August as Centrica look to get rid of three management layers.
To save costs, the energy provider will axe 5,000 jobs in total – over half of which affect those who currently work in management.
The business is still consulting with staff on the proposals but it expects the job losses to happen in the second half of 2020.
Centrica’s chief executive Chris O’Shea says the coronavirus crisis has helped bosses identify where changes need to be made within the already struggling company.
He said: “We’ve learnt through the crisis that we can be agile and responsive in the most difficult conditions and put our customers at the heart of our decision making.
“However, I believe that our complex business model hinders the delivery of our strategy and inhibits the relentless focus I want to give to our customers.”
Mr O’Shea joined the firm three months ago to help turn around parts of the business that were already struggling.
In 2018, Centrica announced plans to axe 4,000 jobs over two years with 700 British Gas staff put out of work because of this.
At the time, it blamed the energy price cap and “fierce” competition.
Centrica is also consulting on changing staff contracts “to simplify terms and conditions for employees in the UK”.
It says there are over 80 different variations of employee contracts, some of which haven’t been updated for 35 years and as a result, need to be “modernised”.
Mr O’Shea added: “We have great people, strong brands that are trusted by millions and leading market positions, but the harsh reality is that we have lost over half of our earnings in recent years.
“Now we must bring focus by modernising and simplifying the way we do business.”
Last week, Prime Minister Boris Johnson admitted there will be “many job losses” due to the pandemic as businesses suffer losses during lockdown.
A “significant” number of the 9million employees currently enrolled on the furlough scheme are being warned they could be made redundant in the coming days.
The scheme has closed to new applicants and from August, bosses will have to start contributing to workers’ pay. (The SUN, UK)
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