Today it was announced that up to 4,500 jobs will be cut in less than a month before Christmas.
Dave Prentis the general secretary of Unison described the act saying “this is a cruel blow for Npower employees”. Due to them choosing to do it at an inconvenient time.
“They’ve been worried about their jobs for months. Now their worst fears have been realised, less than a month before Christmas.”
However Npower explained that they had to take drastic measures to begin the £500 million restructuring plan. Due to a weak beginning of 2019.
Npower are planning to reconstruct the company and increase profit to 100 million by 2022. Joannes Teysen chief executive of Npower said “The UK market is currently particularly challenging. We’ve emphasized repeatedly that we’ll take necessary action to return our business there to consistent profitability”.
The company announced that the lack of good customer service decreased their amount of customers by 7% which left Npower earning less than the proper earning amount. It was reported that throughout 2015 they lost £99 million worth of profit compared to 2014’s profit . This year January they cut 900 jobs because they were warned they’d suffer a big financial loss.
The two year plan
The Npower have claimed that they will be focusing on lower prices. They also stated they will achieve the two year plan by “streamlining activities across the company, eliminating process failures in its customer service and billing systems, and rationalizing the number of systems it uses”. They further included reducing it energy services , continuing their property consolidation program to reduce its current 26 so locations are grouped around three regional hubs and investing in digital technology.
Improving customer service is also what they are prioritizing in their two year plan as that was disclosed to be a main issue in their business.
Paul Coffey said ” Ofgem forecasts that five of the big six energy companies will make a loss or less than normal profits this year owing to the implementation of the price cap…”
The company is now dealing with an increased debt. In 2018 it was 16.6 billion , then it went up to 23 billion to 39.6 million. CEO johannes Teysenne explained “For this purpose, we’ve put together proposals and already begun discussing them with British unions” .
furthermore, “It makes the powerful case for bringing the retail arms of the big six energy firms into public ownership. This would preserve jobs, ensure customers get a better deal and allow the UK to meet its carbon neutral targets.”
Some believe that the 6 energy firms should be in public ownership. “This would preserve jobs, ensure customers get a better deal and allow the UK to meet its carbon neutral targets.” Says Prentis.
Surely the company will achieve success with the 2 year plan and improve for the welfare of the economy.