Npower is to cut 2,400 jobs after reporting losses of more than £100million.
The energy giant said it will make “extensive cost savings” to help turn around the “significant” losses made in 2015 and return the company to profitability.
The German-owned company said its 11,500 employees will be reduced by 2,400, through a mix of those who work directly and indirectly for npower.
A two-year recovery plan was announced to deliver a “robust business” built on lower costs, simplicity, high-quality customer service, and ready for the challenges of the future.
A statement said: “Npower takes its responsibilities to its employees seriously and will consult fully with affected employees and with unions over its proposals for the future of the business.”
Paul Coffey, chief executive of RWE npower, said: “Npower results continue the trend seen earlier in 2015, but they are nonetheless extremely disappointing and we are starting a two-year process to fix them.
“They show a business that tried to do too much, too soon, while not focusing enough on the fundamentals in a constantly changing market. This led to over-complicated processes and procedures resulting in unhappy customers, too many complaints and extra costs to put things right.
“These issues are not insurmountable. Over the past few months, we have looked at every part of npower, and over the next two years we’re fundamentally changing how the company operates.
“We shared the outcome of this review yesterday with employees. By 2018, around 2,400 fewer people will support npower overall through a mix of those who work directly and indirectly for npower.
“Energy should be simple for our customers and we have complicated it. Our plan is to create an npower that delivers better service, is more attractive to customers and better prepared for future opportunities – all at lower costs.
“This will be a huge task for all of us but we are determined to create the better business that our customers expect and shareholders demand.
“I regret that, as we simplify and streamline our activities, this will mean inevitable job losses but I am convinced that these steps are critical to protect the thousands of jobs that will remain.”
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