Bord Gáis workers spared axe in Centrica job cuts programme
Bord Gáis Energy employees are not at risk from plans by the company’s parent, British energy utility Centrica, to cut 5,000 jobs as part of a cost-saving restructuring programme.
It is understood that there are no plans for redundancies at the Bord Gáis business and that the bulk of Centrica’s cuts will occur in its operations in the US and the UK, where it owns British Gas.
Centrica said it is looking at a “significant” restructuring which will result in “a simpler, leaner group”.
That will involve the removal of three layers of management, with the group’s current 40-strong senior leadership team being halved by the end of August.
Centrica said the bulk of the restructuring will take place during the second half of this year and that more than half of the job cuts will come from management positions.
“I believe that our complex business model hinders the delivery of our strategy and inhibits the relentless focus I want to give to our customers,” said Chris O’Shea, who took over as Centrica CEO in March.
“We have great people, strong brands that are trusted by millions and leading market positions, but the harsh reality is that we have lost over half of our earnings in recent years," he said.
Now we must bring focus by modernising and simplifying the way we do business…the changes we are proposing to make are designed to arrest our decline, allow us to focus on our customers and create a sustainable company.
Centrica has seen the Covid-19 pandemic curb energy demand and has had to adapt to a price cap imposed in 2019 on the most common energy tariffs in its core market of Britain.
Earlier this year it canceled its dividend for 2019 and warned of an increase in non-payments by UK customers.
"Since becoming chief executive almost three months ago, I've focused on navigating the company through the Covid-19 crisis and identifying what needs to change in Centrica. We've learnt through the crisis that we can be agile and responsive in the most difficult conditions and put our customers at the heart of our decision making,” Mr O’Shea said.
In addition to the proposed new organisational design, Centrica has also started consultation to simplify terms and conditions for employees in the UK.
In Ireland, Centrica employs more than 300 people at Bord Gáis Energy. While those jobs are safe, management changes are occurring here too.
Existing managing director Catherine O’Kelly is to leave and take up a leadership role with Centrica in the UK.
Ms O’Kelly will be replaced at Bord Gáis Energy by the company’s former managing director Dave Kirwan, who will also serve on Centrica’s group executive committee.
Mr Kirwan returns to Ireland having completed a term as managing director of the UK Home business at Centrica.
“As we emerge from the Covid-19 lockdown, energy supply to businesses, homes and communities will be a vital enabler of Ireland’s economic recovery,” he said.
