Centrica, Owner of British Gas, Plans to Cut 5,000 Jobs
In addition to the cuts, the multinational electrical company intends to radically restructure its organisation to create a “flatter” company hierarchy.
Centrica Plc has announced plans to cut 5,000 jobs in a bid to streamline its operations and reduce overhead.
It is expected that half of the lost jobs will be from managerial positions, and Centrica has specified that half of its 40-strong senior leadership team will step down by September. The company has claimed that three layers of managers will be stripped out by this move.
Chris O’Shea, who became CEO of the company on 17 March, described the cuts as a “difficult decision” that was made in order to “arrest [Centrica’s] decline”. “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,” he said, referring to the company’s structure.
“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.”
As part of a separate announcement, Centrica said that Sarwjit Sambhi, CEO of its consumer arm, and Richard Hookway, CEO of its business arm, will both step down with immediate effect and leave the firm in July as part of the restructuring efforts.
Centrica employs around 27,000 people, 20,000 of whom are based in the UK.