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Npower to cut 2,500 jobs - a fifth of its UK workforce Npower to cut 2,500 jobs - a fifth of its UK workforce
(about 1 hour later)
Energy firm Npower is to cut up to 2,500 jobs, more than a fifth of its UK workforce, with an announcement to staff expected this week.Energy firm Npower is to cut up to 2,500 jobs, more than a fifth of its UK workforce, with an announcement to staff expected this week.
Npower, which is owned by the German energy giant RWE, employs 11,500 people in the UK and is one of the country's big six gas and electricity suppliers.Npower, which is owned by the German energy giant RWE, employs 11,500 people in the UK and is one of the country's big six gas and electricity suppliers.
The BBC understands sales and marketing roles will be the worst hit.The BBC understands sales and marketing roles will be the worst hit.
The company, which has not made any official comment, posted a loss of £48m for the first nine months of last year.The company, which has not made any official comment, posted a loss of £48m for the first nine months of last year.
It has lost about 200,000 UK customers and received the most complaints of the six biggest energy suppliers in 2015.It has lost about 200,000 UK customers and received the most complaints of the six biggest energy suppliers in 2015.
'Devastating blow''Devastating blow'
RWE will announce Npower's full-year results on Tuesday when it is expected to detail the planned job losses.RWE will announce Npower's full-year results on Tuesday when it is expected to detail the planned job losses.
The cuts come as RWE, which generates energy as well as supplying it, has been hit by oil and gas prices falling more than a third in the last year.The cuts come as RWE, which generates energy as well as supplying it, has been hit by oil and gas prices falling more than a third in the last year.
Unison general secretary Dave Prentis said: "These huge job losses will come as a devastating blow to the workforce."Unison general secretary Dave Prentis said: "These huge job losses will come as a devastating blow to the workforce."
The cuts will "leave the already struggling business in an even worse state" and lead to "months of uncertainty" for staff, he went on.The cuts will "leave the already struggling business in an even worse state" and lead to "months of uncertainty" for staff, he went on.
Eamon O'Hearn, of the GMB union, said: "Many hard-working staff have already been outsourced and so any further job losses for directly and indirectly employed staff would be another kick in the teeth for communities." Eamon O'Hearn of the GMB union said: "Many hard-working staff have already been outsourced and so any further job losses for directly and indirectly employed staff would be another kick in the teeth for communities."
The Unite union's Kevin Coyne said the reports of job losses would be "deeply unsettling" for staff.
"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," he added.
Energy billsEnergy bills
Npower's headquarters are in Swindon and most of its UK employees are in central and north east England and in Yorkshire.Npower's headquarters are in Swindon and most of its UK employees are in central and north east England and in Yorkshire.
Last month, the company announced a 5.2% cut in its gas price, taking effect on 28 March - a £32 average annual reduction to customers on a standard domestic tariff.Last month, the company announced a 5.2% cut in its gas price, taking effect on 28 March - a £32 average annual reduction to customers on a standard domestic tariff.
Like other energy suppliers, it is under pressure from ministers and consumer groups to lower energy bills for customers amid the rapid decline in oil and gas prices.Like other energy suppliers, it is under pressure from ministers and consumer groups to lower energy bills for customers amid the rapid decline in oil and gas prices.
The news on job losses also comes days before UK competition regulators unveil plans to make the energy market more transparent for consumers.The news on job losses also comes days before UK competition regulators unveil plans to make the energy market more transparent for consumers.
In December, Npower was ordered to pay a settlement of £26m - the biggest such payment ever demanded by UK energy regulators - for sending out inaccurate bills and failing to deal with complaints correctly. The money was split between charity and affected customers.In December, Npower was ordered to pay a settlement of £26m - the biggest such payment ever demanded by UK energy regulators - for sending out inaccurate bills and failing to deal with complaints correctly. The money was split between charity and affected customers.
Are you an Npower employee? What is your reaction? If you have any information to share with the BBC, you can email haveyoursay@bbc.co.uk.Are you an Npower employee? What is your reaction? If you have any information to share with the BBC, you can email haveyoursay@bbc.co.uk.
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