Npower to cut up to 4,500 jobs as part of restructuring plan

Darnell Taylor
December 1, 2019

Up to 4,500 jobs are going to be cut as part of a major restructuring at supplier npower, as new parent company E.On completes its takeover of the struggling energy provider.

Npower said staff would receive details at information meetings later today on his plans to restructure his United Kingdom operations.

The shake-up will result in up to 4,500 job losses at Npower, British union UNISON said, almost 80% of the division's total staff. Union Unite, which has about 1,000 members at Npower, said the scale of the cuts was "horrific".

Npower has eight sites in the United Kingdom in Worcester, Swindon, Birmingham, Sunderland, Leeds and Oldbury.

"The UK market is now particularly challenging", EON chief executive Johannes Teyssen said in a statement.

"We have repeatedly emphasized that we will take all necessary steps to ensure that our business returns to consistent profitability".

United Kingdom chief executive Michael Lewis said: 'With npower becoming part of the new E.ON - creating the second largest supplier in the United Kingdom - we need to build a sustainable business with a lower cost base that allows us to compete in this extremely challenging market.

'For npower and its employees, these proposals will mean significant changes.

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Leonhard Birnbaum, chief executive of innogy SE, said: "We know that this is bitter and surprising news for many of our Npower employees and we are well aware of our responsibility towards our employees in the months ahead".

He added: 'I also want to reassure customers of both E.ON and Npower that they should not worry about the energy they need for their homes and businesses.

"Nothing changes to your account today and your energy supplies remain safe and secure in our hands".

A spokesman for the GMB union described the announcement as a "body blow" to Npower workers.

"The Government has to urgently wake up to the impact that the price cap is having on good and reasonably well-paid jobs in United Kingdom energy companies".

In the last 18 months, nearly a third of energy suppliers in the United Kingdom have either gone bust or operate at a loss."For Npower and its employees, these proposals will mean significant changes", he added.

Unison general secretary Dave Prentis added: "This is a cruel blow for Npower employees".

The company has not yet confirmed the exact number of job losses, but they could have a heavy impact on its sites in Hull, Leeds, Rainton, Swindon and Worcester.

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