Key Takeaways:
- Centrica cutting 1,300 roles across two phases of restructuring
- Adjusted half-year profit fell 18% on production outages and weak markets
- Utility shifting to digital as customer contact volume drops 20%
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Centrica to cut 1,300 jobs as half-year profit falls 18%
Centrica plans to cut about 1,300 jobs and reported an 18% drop in half-year profit, the utility said Thursday.
"Volatility across energy markets has created challenges in some parts of our business, and some of our delivery has been slower than we would like," Chief Executive Officer Chris O'Shea said. "However, we have continued to invest with discipline to strengthen our portfolio and support long-term growth, making progress pivoting the group toward more stable and predictable earnings."
The company already announced 500 job cuts last month across its Services and Energy call center teams in Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds. The additional 800 cuts target Group Support roles, bringing the total to 1,300. Average contact per customer fell 20% year-on-year, while about 90% of customers now use digital services, the company said. The shift reflects a broader industry trend as major utilities across Europe accelerate digital transformation to reduce operating costs and improve customer experience.
Centrica reported an 18% decline in adjusted core profit for the six months through June. The company partially blamed production outages, as well as unfavorable weather and weak market conditions. The profit drop contrasts with some European peers such as E.ON and RWE that have benefited from stabilizing energy prices and recovering demand after the volatility of recent years.
The restructuring comes as Centrica invests heavily in nuclear energy projects including the Sizewell C plant, a joint venture with EDF Energy. The company said it wanted to focus on driving efficiencies and responding to structural changes in customer behavior. The 1,300 job cuts represent a significant portion of Centrica's workforce as it pivots toward more stable earnings streams from nuclear generation and customer services.
Investors will watch for further details on cost savings and nuclear investment timelines in the company's next update. The restructuring shows management's push to streamline operations as the utility sector faces pressure from digital disruption and changing energy consumption patterns. Centrica's ability to balance cost reduction with investment in new nuclear capacity will be key to its long-term growth strategy.
This article is for informational purposes only and does not constitute investment advice.
