British Gas owner to axe 5,000 jobs following earnings losses

The owner of a UK utilities company has today announced restructuring plans that could see 5,000 people lose their jobs.

Centrica, which owns British Gas, has revealed plans for a “significant” restructure, which will see half of its senior leadership team cut, along with thousands of roles across the country.

The company said that the majority of the restructuring will take place later this year, following consultations on the proposals.

It added that the restructure is due to a desire to simplify its “complex business model”, and the fact that it has lost more than half its earnings in recent years.

Chris O’Shea, group chief executive for Centrica, commented: “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.

“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.

“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.

“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.”