Npower Reveals Reason It Is Axing Up To 4,500 Jobs Under Closure Plan
by Ridwan Yusuf
The new owner of energy firm, Npower says it is cutting up to 4,500 United Kingdom (UK) jobs as part of a plan to make it more profitable.
Concise News understands that three call centres are under threat of closure, at Houghton le Spring, near Sunderland, an office in Hull and one in Worcester.
Unions called the action a “cruel blow” for the company’s workers as Christmas beckons.
Under the restructuring, Npower’s owner E.On will merge computer systems to save money.
“The UK market is currently particularly challenging,” said Johannes Teyssen, E.On chief executive.
“We’ve emphasised repeatedly that we’ll take all necessary action to return our business there to consistent profitability.”
Britain’s sixth largest energy supplier will lose the majority of its 5,700 staff and eight UK offices across the country after a takeover by the German energy giant E.ON.
The owner of E.ON UK will take two years to break apart Npower’s energy business and let go of its staff in a £500m overhaul.
Npower poorly managed – Union
Reacting to the decision, The GMB (General, Municipal, Boilermakers) union said the announcement would be a “body blow” to Npower workers.
“Government has to urgently wake up to the impact that the price cap is having on good and reasonably well-paid jobs in UK energy companies.
“Npower is a poorly managed company with significant losses in the UK but it’s always the workers that face the brunt of poor management coupled with regulation that sends work overseas whilst sacking energy workers in the UK.”
Unison union general secretary Dave Prentis said the news was a “cruel blow” for workers.
“They’ve been worried about their jobs for months. Now their worst fears have been realised, less than a month before Christmas.
“The UK energy market is in real danger of collapse. If nothing is done, there could soon be other casualties,” he said, urging the government to take ownership of the retail businesses of the six largest providers.