Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
British gas utility, Centrica announced plans to reduce its UK workforce by an estimated 3,700 jobs. Centrica has proposed to cut 5,000 jobs globally, which equates to around one-fifth of the group’s 27,000 workforce. The restructuring is designed to hasten a savings target of £2 billion (€2.21 billion approx.) one year earlier than originally planned.
In a bid to simplify its organisational structure, around half of the jobs that will be abolished are positions in leadership, management and corporate services, including 20 roles from the senior leadership team, who will leave by the end of August. The remaining job cuts will be finalised by the end of 2020 after formal consultation has concluded. Around 2,500 management roles will be among those being abolished.
The company, Britain’s largest energy provider, made a large financial loss in 2019 (£849 million, €938 million approx.) and blamed poor results on loss of ground to competitors. A cap placed on energy prices which came into effect at the beginning of January 2019 and a large reduction in gas prices were cited as the main factors contributing to the energy supplier’s trading loss. As it has stakes in Britain’s nuclear power stations, outages at two nuclear power plants also impacted on earnings.
Eurofound (2020), Centrica, Internal restructuring in United Kingdom, factsheet number 101122, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/101122.