Major UK Energy Firm To Slash 5,000 Jobs, Restructure Management Amid Falling Revenue

Centrica, the parent company to one of the United Kingdom's largest gas providers, announced on Thursday it will be cutting up to 5,000 jobs in an attempt to restructure the company and halt losses

MOSCOW (UrduPoint News / Sputnik - 11th June, 2020) Centrica, the parent company to one of the United Kingdom's largest gas providers, announced on Thursday it will be cutting up to 5,000 jobs in an attempt to restructure the company and halt losses.

"The revised operating model is expected to accelerate the delivery of targeted cost savings and lead to a reduction of around 5,000 roles across the Group ... The majority of the restructuring is expected to take place in the second half of 2020, following consultation on the proposals with our colleagues," Centrica said in a press release.

The owner of British Gas, which supplies heating and fuel to all four countries of the UK, as well as Ireland and Canada, also said that it will shed about one half of all leadership, management and board of directors seats.

"I truly regret that these difficult decisions will have to be made and understand the impact on the colleagues who will leave us. However, the changes we are proposing to make are designed to arrest our decline, allow us to focus on our customers and create a sustainable company," CEO Chris O'Shea said in the press release.

Increased competition, a government cap on energy bills and a complex business model have contributed to the company's 35 percent fall in revenue disclosed earlier this year, Sky news reported.

Justin Bowden, a union leader who represents many British Gas employees said that "Slashing thousands more jobs is not the answer," arguing that the company "cannot just cut [its] way out of a crisis," according to Sky News.