Coronavirus: British Gas owner Centrica to cut 5,000 jobs

Centrica will strip out three layers of management to slimline the business and cut down on bureaucracy.

Centrica, which owns British Gas, has said it will cut 5,000 jobs

Centrica

11 June 2020

Centrica, which owns British Gas, has said it will cut 5,000 jobs due to the impact of the coronavirus pandemic.

Around half of the lost jobs will be among the company’s leadership, management and corporate staff. Most of the restructuring is expected to happen in the second half of this year.

Centrica has been in decline for several years, having lost half of its earnings in the last decade as smaller energy suppliers have taken customers from British Gas.

The need to restructure has in part been accelerated by the impact of coronavirus.

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.”

He added: “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.”

Justin Bowden, GMB National Secretary, said: “Too little too late management decisions have left a once proud brand crippled and weak. Slashing thousands more jobs is not the answer. You cannot just cut your way out of a crisis.

“GMB will fight for every single job.”

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