Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

CoronavirusLatest NewsFurloughTrade unionsRedundancy

Centrica to axe 5,000 jobs

by Adam McCulloch 11 Jun 2020
by Adam McCulloch 11 Jun 2020 Steve Parsons/PA Wire/PA Images
Steve Parsons/PA Wire/PA Images

Centrica, which owns British Gas, has announced plans to cut 5,000 jobs because of the impact of the coronavirus pandemic.

About half of the jobs to be cut will be among the firm’s leadership, management and corporate staff. Three layers of management will be stripped out, said chief executive Chris O’Shea, adding that the company’s “complex business model hinders the delivery of our strategy”.

Most of the restructuring is expected to happen in the second half of this year and half of the current 40-strong senior leadership team is expected to leave the group by the end of August.

Centrica which has 20,000 employees in the UK and another 7,000 beyond UK borders, has been in decline for several years because smaller energy suppliers have taken customers from British Gas. Its revenues have halved over the past decade.

Covid-19 redundancies

How do British and French laws on collective redundancy differ?

BP and Mulberry job cuts

BA plans to re-hire staff on worse terms claims union

Latest redundancy news

Coronavirus: Temporary changes to workplace policies and procedures 

It said it would be consulting its workforce on simplifying terms and conditions for employees in the UK where there were 80 different employee contracts – some more than 35 years old – each with several variants.

The restructuring is expected to take place in the second half of 2020 following staff consultations.

O’Shea, who was until April the company’s finance director, said the pandemic had revealed how the company could work in future: “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. Now we must bring focus by modernising and simplifying the way we do business.

“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.”

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.”

The GMB union, however, expressed anger at the move. 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.”

The union said it would “fight for every job”.

As part of the overhaul, Centrica announced that Sarwjit Sambhi, chief executive of Centrica Consumer, and Richard Hookway, chief executive of Centrica Business, would be stepping down from the board immediately and would exit the company by the end of July.

“I truly regret that these difficult decisions will have to be made and understand the impact on the colleagues who will leave us.”

According to the Office of National Statistics the number of firms that think they’ll have to make staff redundant has fallen significantly since earlier in lockdown.

Yesterday (Wednesday 10 June) was the final day on which firms could apply for furlough money.

Latest HR job opportunities on Personnel Today

Browse more human resources jobs

energy
Adam McCulloch
Adam McCulloch

Adam McCulloch is a freelance writer and production editor who has worked in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He also works for a national newspaper and is the author of KentWalksNearLondon

previous post
Business pressure grows to relax two-metre advice
next post
‘Purposeful’ work essential to attracting talent post-Covid

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

P&O Ferries boss denies reputational damage after mass...

27 May 2022

Maternity leave: Cost of living crisis highlights need...

25 May 2022

Tube strike on 6 June to see 4,000...

24 May 2022

Prime minister steps up calls for 90,000 civil...

13 May 2022

Queen’s Speech: absence of employment bill leaves organisations...

10 May 2022

Morrisons saves 16,000 jobs with McColl’s rescue deal

10 May 2022

A dark day for workers’ rights – why...

29 Apr 2022

P&O Ferries told to return £11m furlough money...

28 Apr 2022

Government must take over P&O Ferries services, demands...

15 Apr 2022

Planned redundancies rise 103% in one month

11 Apr 2022
  • Strathclyde Business School expands its Degree Apprenticeship offer in England PROMOTED | The University of Strathclyde is expanding its programmes...Read more
  • The Search for Talent: Six Major Employer Pitfalls PROMOTED | The Great Resignation continues unabated...Read more
  • Navigating the widening “Skills Confidence Gap” in 2022, and beyond PROMOTED | Cornerstone OnDemand conducted a global study...Read more
  • Apprenticeships are the solution to your recruitment problems PROMOTED | Apprenticeships have the pulling power...Read more
  • What it really means to be mentally fit PROMOTED | What is mental fitness...Read more
  • How music can help to ease anxiety at work PROMOTED | A lot has happened since March 2020, hasn’t it?...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+