Centrica To Slash 3,000 Jobs

Centrica, the owner of British Gas, is cutting 3,000 jobs this year as is looks to cut costs amid declining customer numbers.

Around 800 of those jobs were axed in the first three months of the year, during which the company's UK Home business suffered a 1.5pc fall in household customers.

Britain's largest energy supplier said it was on track to deliver £200m of efficiency savings this year, helped by lower operating costs, and would spend no more than £1bn on small acquisitions in 2016.

The FTSE 100 Company is holding its annual general meeting today, when chief executive shareholders over his £3m pay package.

A third of investors voted against Mr Conn's remuneration last year over complaints that the board was “paying itself large sums of money for cutting our dividend" by 30pc.

A similar protest is expected at this year's AGM, which comes days after 59pc of BP's investors rejected chief executive Bob Dudley's £14m pay package.

Centrica reported a pre-tax loss for the second consecutive year in 2015, despite a 30pc rise in earnings from its household gas and electricity supply division. The company's share prices as tumbled tumbled by 10pc in the past 12 months.  

The energy giant unveiled plans to attract new customers, including a gas price cut in the second quarter - its third such reduction since the start of 2015, effective from March 16.

"We continue to make good progress in implementing our strategy, and with improving levels of customer service, good operational performance, lower costs, and the launch of new products to help customers manage their energy usage, we remain on track to deliver against our 2016 targets," Mr Conn said.  

Centrica also announced that it had submitted its formal response to the Competition and Markets Authority over an investigation into the supply and acquisition of energy in Great Britain.  

The CMA's final report is due in June.




April 2016