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| Npower to cut 1,400 jobs in the UK | Npower to cut 1,400 jobs in the UK |
| (about 1 hour later) | |
| Energy giant Npower is to cut 1,400 jobs as part of a major restructuring of its UK operations. | Energy giant Npower is to cut 1,400 jobs as part of a major restructuring of its UK operations. |
| There are to be closures at a number of the company's sites in the UK, while some back-office operations will be outsourced to India. | There are to be closures at a number of the company's sites in the UK, while some back-office operations will be outsourced to India. |
| The BBC has learned that a further 570 jobs will be outsourced within the UK. | The BBC has learned that a further 570 jobs will be outsourced within the UK. |
| Npower, one of the UK's "big six" gas and electricity suppliers, currently employs 9,600 people in the UK. | Npower, one of the UK's "big six" gas and electricity suppliers, currently employs 9,600 people in the UK. |
| Npower announced a major overhaul of its UK operations in August. It is expected that Npower will give details of the job losses on Thursday morning. | Npower announced a major overhaul of its UK operations in August. It is expected that Npower will give details of the job losses on Thursday morning. |
| Cuts to come | Cuts to come |
| In a statement, Npower said: "As we announced a couple of months ago, Npower has been undertaking a major review of sites, operations and people across the UK. | In a statement, Npower said: "As we announced a couple of months ago, Npower has been undertaking a major review of sites, operations and people across the UK. |
| "We've been doing this to improve our customer service and keep our costs down, at a time of external pressures on customers' bills." | "We've been doing this to improve our customer service and keep our costs down, at a time of external pressures on customers' bills." |
| In response to the news, Colin Smith, the GMB union's northern region senior organiser, said: "GMB will vigorously campaign against the offshoring of jobs to India because it has absolutely nothing to do with customer service and everything to do with cost." | |
| GMB added that Thursday's announcement will include details of site closures, but it understands that these will be Peterlee in Durham, Thornaby in North Yorkshire, and Stoke-on-Trent. | |
| Npower's parent company, German power giant RWE, announced plans earlier this month to cut 6,750 jobs across Europe and reduce costs by 1bn euros (£840m). | Npower's parent company, German power giant RWE, announced plans earlier this month to cut 6,750 jobs across Europe and reduce costs by 1bn euros (£840m). |
| The company announced the cuts would be carried out between 2014 and 2016, in a bid to tackle low wholesale prices for energy and an increase in renewable capacity. | The company announced the cuts would be carried out between 2014 and 2016, in a bid to tackle low wholesale prices for energy and an increase in renewable capacity. |
| Profits fall | Profits fall |
| Also earlier this month, RWE said that Npower had seen a 3% fall in operating profits to £176m (206m euros) in the first half of 2013. | Also earlier this month, RWE said that Npower had seen a 3% fall in operating profits to £176m (206m euros) in the first half of 2013. |
| RWE pointed to new government regulations for simplified energy tariffs, as well as to energy-saving measures in domestic homes for dented profits. | RWE pointed to new government regulations for simplified energy tariffs, as well as to energy-saving measures in domestic homes for dented profits. |
| Last week, Npower said it would sell some subsidiaries to Telecom Plus, which trades as Utility Warehouse, for £218m. | Last week, Npower said it would sell some subsidiaries to Telecom Plus, which trades as Utility Warehouse, for £218m. |
| Telecom Plus will officially take over contracts to supply gas and electricity to 770,000 accounts as part of the deal. | Telecom Plus will officially take over contracts to supply gas and electricity to 770,000 accounts as part of the deal. |