Centrica has announced around 5,000 job cuts, with the majority expected to take place in the latter half of 2020.
The news comes as part of the announcement of a business-wide restructure at the energy giant, designed to create a “simpler, leaner” business focused on customer delivery.
The company will have fewer customer-facing business units, with three management layers to be removed to create a “flatter, less bureaucratic organisation” – this will result in around half of the current 40 strong Senior Leadership Team leaving their roles by the end of August and around 2,500 management level job losses overall.
Centrica Group Chief Executive Chris O’Shea said: “Since becoming Chief Executive almost three months ago, I’ve focused on navigating the company through the Covid-19 crisis and identifying what needs to change in Centrica. 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. 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.
“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.”