The rumours emanating from the energy firm Npower, that the company is gearing to cut up to 2,500 jobs, will not go down well with energy and mining contractors. This announcement is expected in the next few days when the parent company RWE announces Npower’s annual results.
Npower is one of the country’s biggest gas and electricity suppliers and the job cuts will effect more than a fifth of its UK workforce. Although the company has not yet made any official comment, sales and marketing roles are expected to be hit the worst, as the company posted a loss of £48m for the first nine months of last year.
Not only has the company lost 200,000 of its customers, but out of the Big 6 energy suppliers it received the highest number of complaints last year. In December, the company had to pay a settlement of £26m for certain inaccuracies in bills and not handling complaints correctly. Due to this and the fall in the oil and gas prices, things are not going well for the energy giant.
“These huge job losses will come as a devastating blow to the workforce,” Unison General Secretary Dave Prentis said. Prentis said that the company would be hit even further by these job losses, and the employees would have to cope with “months of uncertainty.”
Kevin Coyne from Unite union said: “It is an inexcusable way for the company to treat a loyal workforce which has worked hard to turn Npower’s record on customer service around in the last year.”
Just last month, the company announced a 5.2% cut in its gas price after being pressured to reduce energy bills amid the declining oil and gas prices. The news about job losses comes days before plans about making the energy market more transparent for consumers was to be unveiled.