Centrica plc will reduce its workforce by 3000 jobs this year, with the first 800 jobs to be cut in the first three months, in efforts to cut costs by more than US$1 billion (£750 million) per year. The job cuts are most likely to hit British Gas, Centrica's division which sells gas, electricity and boilers to homes.
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Image of Iain Conn, Centrica chief executive. Image from Centrica. |
The majority of the firm's 30,000+ staff are in its British Gas business. Centrica Energy, the firm's upstream business, which includes energy marketing and trading as well as upstream exploration and production, employs just over 2200 as of 2015.
Today, the UK union for energy workers, GMB said that staff at the firm were confused and disillusioned, managers didn't know "if they're staying or going and the only word from the top is cut, cut, cut."
"Centrica's main operating business, British Gas, is going through considerable management upheaval while trying to implement major cost and headcount reductions which is putting the whole business under real strain and it is creaking,” Brian Strutton, GMB national secretary said. “Staff are confused and disillusioned, managers don't know if they're staying or going and the only word from the top is cut, cut, cut. Announcing even more job losses will be a bitter blow and GMB will be consulting with shop stewards and reps to discuss what steps to take.”
Centrica, confirming the cuts today (18 April), also said that a total of $285 million (£200 million) of efficiency savings is set to be delivered in 2016, as part of the company’s $1 billion per year cost efficiency program. Centrica is aiming to lower its operating costs this year, compared to 2015.
In addition, small acquisitions for the year are expected to be no more than $1.4 billion (£1 billion), of which $$714 million (£500 million) will be in the exploration and production sector.
“We continue to make good progress in implementing our strategy, and with improving levels of customer service, good operational performance, lower costs, and the launch of new products to help customers manage their energy usage, we remain on track to deliver against our 2016 targets,” Iain Conn, Centrica chief executive said.
Also today, Det Norske agreed to buy Centrica Resources Norge’s operated stake in the Figg Gamma Delta, and Rind discoveries in the North Sea.
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