E.ON to cut 500 support jobs

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The Independent Online

Energy giant E.ON is to cut 500 jobs in its UK support functions to reflect the "changed nature of the business" following the sale of its distribution arm earlier this year, the firm announced today.





The company said it was seeking up to 500 voluntary redundancies, likely to impact mainly at its head office in Coventry and other sites near Nottingham.



The announcement follows the sale of E.ON's distribution arm, Central Networks, in March and the subsequent concentration on the customer-facing business.



Chief executive Paul Golby said: "We had to undertake a deep and rigorous review of how much money we spend in order to ensure we keep costs as low as possible for our customers, become a more agile organisation and build a sustainable business in the UK.



"While I'm very aware that this will be a difficult time for our colleagues, it is our aim to keep uncertainty to a minimum and to achieve these redundancies by voluntary means."









The German-owned utility group said that due to the voluntary nature of the planned redundancies, it was not possible to say how many people at each site will be affected by the changes.

The company employs around 12,000 people in the UK and more than 79,000 worldwide.





Mike Jeram, national officer at Unison, which represents workers at E.ON, said: "This is a devastating blow. We will work with the company to get the best deal for our members."









Mike Jeram, national officer at Unison, which represents workers at E.ON, said: "This is a devastating blow. We will work with the company to get the best deal for our members."





Emily Boase, national officer at the Prospect union, which has 1,200 members at the company, said: "We understand that recent changes to E.ON's business structure, in particular following the sale of its distribution arm Central Networks, and the wider challenges facing the global energy industry, have necessitated a review of its UK operating model.



"While the loss of any jobs is regrettable, we welcome the commitment from chief executive Paul Golby to work closely with the unions and seek to achieve these redundancies through voluntary means wherever possible.



"While it is too early to say how many of our members will be affected, or at which sites, we are relieved to hear that E.ON are not proposing to close any of the business' locations as part of its simplification proposals."





PA

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