Only weeks after increasing gas and electricity prices the energy giant, E.ON, is cutting 500 jobs.
E.ON, one of the largest energy companies in the country, is to cut 500 jobs only weeks after putting up gas prices by 18% and electricity prices by 11%. The company blames the job losses on the sale of its distribution network, Central Networks, earlier in the year.
Utility Exchange reported back in March that E.ON had sold part of its distribution business to PPL Corporation. E.ON said the job losses were as a result of the sale of Central Networks and a need to keep costs down in order to benefit customers. However, experts suggest that E.ON has moved a lot of work back to its headquarters in Düsseldorf.
The chief executive of E.ON in the UK, Paul Golby, said “We had to undertake a deep and rigorous review of how much money we spend in order to ensure we keep costs as low as possible for our customers, become a more agile organisation and build a sustainable business in the UK”.
He added “While I’m very aware that this will be a difficult time for our colleagues, it is our aim to keep uncertainty to a minimum and to achieve these redundancies by voluntary means”.
The job losses will be concentrated at E.ON’s Coventry and Nottingham offices as the company tries to cut out duplication of jobs. Most of the jobs to go will be in human resources, communications and the legal services department and the company hopes most of these will be through voluntary redundancy.
The national officer at the union Unison, Mike Jeram, said “This is a devastating blow. We will work with the company to get the best deal for our members”.
The national secretary of the Prospect union, Emily Boase, said “While the loss of any jobs is regrettable, we welcome the commitment from chief executive Paul Golby to work closely with the unions and seek to achieve these redundancies through voluntary means wherever possible”.
The news of job losses comes only weeks after the company announced an increase in gas and electricity prices. All of the Big Six energy companies have now increased prices and it’s not just domestic prices which have gone up. Business electricity prices and gas prices have also risen over recent months.