E.On announces 500 UK job cuts as energy market changes at 'unprecedented rate'

Energy supplier slashes British workforce by more than 5% as market remains 'increasingly competitive'

Big energy firms have lost customers and come under fire from regulators after hiking their standard tariffs (Reuters)

E.On will cut 500 UK jobs as the UK energy market changes at an “unprecedented rate” and remains “increasingly competitive”, the gas and electricity supplier has announced.

The firm, which hiked prices for 1.8 million customers in June, said it would reduce numbers across non-customer facing departments as part of ongoing efforts to transform how it operates and improve efficiency.

The job losses amount to more than 5 per cent of E.On’s 9,400-strong UK workforce.

The announcement comes a day after fellow Big Six energy supplier British Gas revealed it had shed 340,000 customer accounts as consumers desert large firms for smaller rivals.

E.On chief executive Michael Lewis said: “We're always looking to make sure we're equipped to respond to the rapid pace and challenges of the UK energy market and we know we can never stand still if we are to continue giving customers a high-quality and cost-effective service.

“We've undertaken a rigorous review of our options to ensure we keep costs as low as possible, become a more agile organisation and remain a sustainable business in the UK.

“In discussion with trade unions we've identified potential reductions of around 500 roles across the UK and we're committed to achieving these reductions on a voluntary basis wherever possible.

“This is one element of our ongoing transformation which, in total, will help us achieve savings of around £100 million across our mid-term plan.

“I'm very aware this will be a difficult time for our colleagues but our aim has always been to keep uncertainty to a minimum and I can assure everyone affected that we'll be as supportive as we can.”

The company has not yet revealed which specific sites or business areas will be most affected by the plans.