Britain's biggest energy supplier Centrica announced Thursday that it plans to cut around 5,000 jobs in a move to implement "targeted cost savings" and accomplish "a significant restructure".
The restructuring plans, to be carried out mainly in the second half this year, are designed to create "a simpler, leaner Group focused on delivering for our customers," said the firm in a statement.
Among the reduction of nearly 5,000 jobs, over half of the departures may "come from management layers," said Centrica, adding that around half of the current 40 strong senior leadership team will leave the group by the end of August.
Centrica Group Chief Executive Chris O'Shea, who took office about three months ago, said: "I've focused on navigating the company through the COVID-19 crisis and identifying what needs to change in Centrica."
"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,"said O'Shea, adding that the harsh reality was that "we have lost over half of our earnings in recent years."
In February, the company reported a 35 percent drop in its adjusted operating profit in 2019 year-on-year, blaming the country's new price cap for the loss.
The Office of Gas and Electricity Markets (Ofgem), Britain's energy regulator, introduced a price cap on default energy tariffs on Jan. 1, 2019, which would give price protection to around 11 million energy customers.
As an international energy services supplier, Centrica also operates in countries including Ireland, Canada and the United States.
Editor:Cherie
