Energy supplier cuts costs
Centrica to axe 5,000 jobs as pandemic takes toll
Big job cuts ahead for gas supplier
Centrica, owner of Scottish and British Gas, is cutting 5,000 jobs as it looks to adjust its cost base in the post-Covid economy.
Leadership roles will take the brunt of the cutback with the company planning to take out three layers of management. Half its 40-strong senior team will go.
The restructuring is expected to take place in the second half of 2020 although some roles are likely to be axed sooner.
The group, which is involved in upstream activities as well as supplying gas and electricity to retail customers, will be slimming down and simplifying up to 80 different employee contracts.
Chief executive, Chris O’Shea, said he regretted the decision, but said the company’s “complex business model hinders the delivery of our strategy”, adding that the group had lost half of its earnings in recent years and needed to simplify how it did business.
The announcement comes as German airline Lufthansa announces plans to shed 22,000 jobs and adds to other recent big job culls including 9,000 at aerospace firm Rolls-Royce, 10,000 roles at BP and 1,000 at Bentley cars.