Centrica plc announced plans on Thursday for a “significant restructure” which it says is designed to create a “simpler, leaner” group.
The revised operating model is expected to lead to a reduction of around 5,000 roles across the company. Over half of these job losses are anticipated to come from management layers, according to Centrica, which outlined that most of the restructuring is expected to take place in the second half of this year.
Centrica also revealed that it will start consultation to simplify terms and conditions for employees in the UK. The company said it has over 80 different employee contracts and stated that it needs to modernize these.
“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,” Centrica Group Chief Executive Chris O’Shea said in a company statement posted on the company’s website.
“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. However, 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,” he added in the statement.
“The harsh reality is that we have lost over half of our earnings in recent years. Now we must bring focus by modernizing and simplifying the way we do business … I truly regret that these difficult decisions will have to be made and understand the impact on the colleagues who will leave us,” O’Shea continued.
Centrica describes itself as an international energy, services and solutions company. The business, which is based in the UK, had a direct headcount of 26,932 on December 31, 2019. This figure stood at 30,520 on December 31, 2018.
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