Centrica, the parent company of the UK's largest domestic energy supplier British Gas, will cut 5,000 jobs due to the impact of the coronavirus pandemic, the company announced on Thursday.
Centrica has designed a new business model to scale the company down in light of the negative coronavirus-related impact on the company.
According to the announcement, the company will have fewer customer-facing business units, all of which will report directly to the CEO.
The model will also see the removal of three management layers to create a flatter, less bureaucratic organization that is more customer-focused.
"The revised operating model is expected to accelerate the delivery of targeted cost savings and lead to a reduction of around 5,000 roles across the group, with over half of the departures expected to come from management layers. The majority of the restructuring is expected to take place in the second half of 2020, following consultation on the proposals with our colleagues," Centrica explained.
"Since becoming Chief Executive almost three months ago, I’ve focused on navigating the company through the Covid-19 crisis and identifying what needs to change in Centrica," Centrica Group Chief Executive Chris O’Shea said of the changes.
He expressed his regret about the need to make these decisions, as he understands the impact on the colleagues who will leave.
"However, the changes we are proposing to make are designed to arrest our decline, allow us to focus on our customers and create a sustainable company," O'Shea concluded.
By Murat Temizer