Energy giant Eon has stressed “no decisions” have been made about staff numbers after reports suggest the company is preparing to announce hundreds of UK job cuts next week.
The company is expected to reduce its UK operations by around 500 employees ahead of the impending energy price cap, according to The Times.
Eon, which employs more than 9,000 UK staff has neither confirmed nor denied the number. However, it revealed it has been in conversation with trade unions about how it might “respond” to challenges in the UK energy market.
A spokesperson for the German-owned provider stressed no decisions have been made at this stage and that colleagues “will be the first” to hear of any proposed changes.
They said: “We are always looking to make sure we are equipped to respond to what is a fast-moving and highly challenging UK energy market to give customers a high quality and cost-effective service.
“Clearly we and others across the energy industry need to adapt in order to compete in this changing market environment and we have been in conversations with our trade unions about how we might respond.
“We must stress no decisions have been made at this stage and, as always, our colleagues will be the first to hear of any proposed changes to how we operate.
“Any further speculation at this time is unhelpful and potentially distressing for colleagues.”
In March, Eon revealed up to 5,000 jobs could be cut as part of a major asset swap with RWE, which will see Eon acquire Innogy, the parent company of Npower. Eon said the cuts would equate to less than 7 per cent of the workforce at the enlarged company.
A leaked email in May from the chief executive of Innogy, Uwe Tigges revealed he was “extremely concerned” the Npower owner would take the brunt of thousands of job cuts.
Centrica is another big six firm considering job cuts in the face of the looming price cap and following a 17 per cent fall in adjusted operating profits in its preliminary financial results for 2017.
Thousands of job losses were announced in order to cut annual operating costs by £750 million in the five years from 2015.
The company said the target was achieved three years ahead of schedule but it will cut another 4,000 jobs in a bid to make £500 million of further cost savings over the next three years.
Last month Eon announced it will increase its standard variable tariff electricity and gas prices, due in part to “the significant rise in the cost of wholesale energy”. The change, which will come into effect on 16 August, will see prices for duel fuel customers increase by an average of 4.8 per cent.