Hundreds of job cuts planned by E.On

By Alan Jones, PA Industrial Correspondent
·2-min read

Energy giant E.On is planning to cut almost 700 jobs over the next two years, mainly in support and management roles, as part of the migration of customers to a new platform.

A total of 695 jobs will be affected, out of 3,500, mainly from the firm’s non-customer-facing residential and smaller firms (SME) business.

The new E.On Next platform is due to complete in 2022.

An E.On spokesman said: “We have updated colleagues today on plans to continue the transformation of a number of areas in our UK business, primarily our residential and SME supply operation with a small number of roles from our industrial and commercial business.

“This is not a new announcement – it’s the next level of detail on proposals which have previously been outlined to colleagues.

“We are migrating Npower and E.On customers to our new E.On Next platform and the efficiency improvements mean our residential and SME operation will ultimately be smaller in the future.

“We will continue to consult fully with trade unions and any reduction in job numbers will be achieved over the course of the next two years, through voluntary means wherever possible.

“As always, we’ll work with our colleagues to offer help and support, including guiding people to other opportunities within E.On.”

German-owned E.On is the UK’s second largest energy supplier, employing a total of 9,400 workers.

Unite regional officer Matt Jones said: “This is devastating news for E.On workers and their families in the run-up to Christmas but was not unexpected given that recent talks have taken place against a background of the harmonisation of the services offered by E.On since it acquired Npower.

“The restructuring process has also been accelerated by the impact of Covid-19 on its business model.

“Unite remains committed to working in a constructive manner with the E.On management during this difficult time for the energy sector specifically and the country generally, as well as giving maximum support to our members.”

He added: “During the consultation period, we will be examining the business case for the job losses and exploring options, such as enhanced voluntary redundancy packages, redeployment and early retirement, to mitigate the impact on the livelihoods and jobs of our members.

“We will be strongly opposing compulsory redundancies.

“However, we won’t tolerate any moves that use the pandemic as an excuse to erode pay and employment conditions of our members – such moves will be strongly resisted.”