Eon looks to cut 500 jobs in UK due to ‘competitive market’

Energy giant Eon has confirmed it is “seeking” to cut 500 jobs across its UK operations.

Chief executive, Michael Lewis, confirmed today (1 August) that the company has identified “potential reductions” of 500 roles across the UK.

Citing an “increasingly competitive environment” the company said it was looking to reduce numbers across non-customer facing departments as part of ongoing efforts to transform how it operates, to improve efficiency and continue to innovate in its service for customers.

Eon, which employs more than 9,400 people in the UK,  said last week that “no decisions” had been made about staff numbers after reports suggested the company was preparing to announce hundreds of UK job cuts ahead of the energy price cap.

Today the company said it was committed to achieving the reductions on a voluntary basis “wherever possible”.

Lewis said: “Clearly there are numerous challenges across the energy market and we’re dealing with all of them, not least the forthcoming price cap.

“Our proposals today are part of a wider range of measures to reinvent our core business for the new energy world; where self-reading smart meters give customers more accurate bills and greater knowledge about their energy, and a wide range of solutions such as solar, storage and e-mobility put customers more in control of their energy.

“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 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 £100 million 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.”

Due to the voluntary nature of the job reductions, Eon said it cannot say how many people at individual sites or specific business areas will be affected by the proposals.