British Gas owner Centrica has announced plans to cut around 1,300 jobs after reporting a sharp fall in first-half profits, blaming warmer weather, energy market volatility and weaker trading
conditions.
The job reductions include about 500 customer service roles and a reduction in outsourced offshore positions. The company said some of the cuts have already been implemented as part of a broader drive to reduce costs and improve efficiency.
Centrica's adjusted operating profit fell 18% to £737 million in the six months to 30 June, compared with the same period last year. The company said profits were hit by the sale of assets in its Spirit Energy business, production outages and lower demand caused by unusually mild weather.
Chief Executive Chris O'Shea said volatile global energy markets, including disruption linked to the conflict involving Iran, had created difficult trading conditions.
"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," he said.
Investors reacted negatively to the results, with Centrica shares falling more than 4% in early trading, making the company one of the biggest losers on London's FTSE 100 index.
Alongside the restructuring, Centrica said it would accelerate a major transformation programme worth around £600 million, increasing investment in artificial intelligence, digital services and technology upgrades.
The company said the investment is intended to simplify operations, improve customer services and reduce long-term costs as it adapts to changing conditions in the energy sector. Photo by Annasmith1986, Wikimedia commons.
