Nick Abbot 10pm - 1am
British Gas owner Centrica announces plans to slash 5,000 jobs
11 June 2020, 09:14
British Gas owner Centrica has announced plans to cut 5,000 jobs due to the impact of the coronavirus pandemic.
The company announced on Thursday morning that more than half of the planned job cuts would impact managers as part of restructures across the organisation with most of the cuts set to take place in the second half of 2020.
The group plans to would strip out three layers of management to slimline the business and cut down on bureaucracy in the wake of the coronavirus crisis.
The cuts include half of the 40-strong senior leadership team who will step down by the end of August.
But it is also starting consultations on plans to "simplify terms and conditions" for all its UK employees, who are on more than 80 different employee contracts.
As part of the overhaul, it announced that Sarwjit Sambhi, chief executive of Centrica Consumer, and Richard Hookway, chief executive of Centrica Business, are stepping down from the board immediately and will leave the company by the end of July.
Chris O'Shea, Centrica's recently-appointed chief executive, said: "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."