COVENTRY-based E.ON has announced 500 job losses amid the ‘challenges of the UK market’ and an energy price cap.
The energy company – one of ‘the big six’ – has suggested the cuts are due to the energy market becoming an ‘increasingly competitive environment’.
The news comes after the government’s announcement it will introduce a price cap on energy tariffs in the winter.
The company says it is looking to reduce numbers across ‘non-customer facing departments’ as part of ongoing efforts to transform how it operates.
It says the restructuring is aimed at improving efficiency.
The company says it is not currently possible to say how many people at individual sites or specific business areas will be affected by the proposals due to the voluntary nature of the proposed job reductions,
E.ON currently employs more than 9,400 people across the UK.
Michael Lewis, chief executive of E.ON UK, said: “Clearly there are numerous challenges across the energy market and we are dealing with all of them, not least the forthcoming price cap.
“We’re always looking to make sure we’re equipped to respond to the rapid pace and challenges of the UK energy market and we know we can never stand still if we are to continue giving customers a high quality and cost-effective service.
“We’ve undertaken a rigorous review of our options to ensure we keep costs as low as possible, become a more agile organisation and remain a sustainable business in the UK.
“In discussion with our trade unions we’ve identified potential reductions of around 500 roles across the UK and we’re committed to achieving these reductions on a voluntary basis wherever possible.
“This is one element of our ongoing transformation which, in total, will help us achieve savings of around £100million across our mid-term plan.
“I’m very aware this will be a difficult time for our colleagues but our aim has always been to keep uncertainty to a minimum and I can assure everyone affected that we’ll be as supportive as we can.”