Wednesday, February 3, 2016

News: British Gas to cut 500 jobs as part of Centrica strategy

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British Gas is proposing to make a reduction of about 500 roles as it implements a Group-wide efficiency programme.

In July 2015, after a wide-ranging strategic review, Centrica announced a Group-wide efficiency programme in order to be competitive in a fast-changing energy market.

As part of the ongoing implementation of that strategy, British Gas is proposing to make a reduction of about 500 roles.

The BBC is reporting that most of the posts being cut are based in Leeds, Oxford and Leicester and will include staff who deal in loft insulation and cavity wall insulation.

The company has confirmed that this will effect operations at British Gas Business which has a site in Rotherham.

British Gas Business is a business energy supplier in the UK, supplying business gas, business electricity and a range of energy services to UK's businesses.

Mark Hodges, chief executive, Energy Supply & Services, UK and Ireland, at Centrica, said: "We are focused on improving the efficiency and effectiveness of our organisation to meet the changing needs of our customers. British Gas is well positioned to grow, but we must ensure that our costs allow us to be competitive for our customers.

"I recognise that this will be difficult news for the employees who may be affected. However I believe today's announcement is in the best long-term interests of the business. Our priority is to support all those potentially impacted, and to ensure a fair and transparent consultation process."

As part of the programme, Centrica said that it would target cost efficiencies of £750m per annum by 2020, with about two-thirds of the savings expected to be delivered by the end of 2018. This is expected to result in a "net impact on headcount to be about 4,000 roles."

British Gas Business, which has operations at Templeborough in Rotherham, was impacted by issues following the implementation of a new billing and CRM system in 2014, which resulted in significant delays to issuing customer bills. It only made a small profit in the first half of 2015, significantly lower than in the first half of 2014. Having resolved the issues, Centrica expects British Gas Business to make a small operating loss in 2015.

Centrica website

Images: British Gas

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