11th Jun 2020 09:05
(Alliance News) - Centrica PLC on Thursday said it is planning a "significant" restructure, leading to a reduction of around 5,000 roles, to create a simpler, leaner company, focused on delivering for its customers.
The Windsor, England-headquartered energy services provider said it intends to have fewer customer-facing business units, all of which will report directly to the chief executive.
"Three management layers will be removed to create a flatter, less bureaucratic organisation which is closer to, and focused on, the customer," Centrica said in its statement Thursday.
As a result of these changes, the company said around half of the current 40 senior leadership team members will leave the company by the end of August.
As part of this restructuring, Sarwjit Sambhi, chief exeutive of Centrica Consumer and Richard Hookway, CEO of Centrica Business will step down from the board immediately and will leave the company by the end of July.
Centrica explained it wants to retain a smaller board size while still adding new capability to support the overall group restructure towards a "leaner and more agile" customer-focused business.
As part of this change, Centrica appointed Johnathan Ford as chief financial officer with immediate effect. He also will join the Centrica board.
Carol Arrowsmith was named as a non-executive director, also with immediate effect.
"These appointments complete a significant refresh and re-sizing of the board which will enable Centrica to focus on delivering competitively priced, high quality services and products for our customers," said Centrica Chair Scott Wheway.
Centrica said the revised operating model is expected to accelerate the delivery of targeted cost savings and lead to a reduction of around 5,000 roles across the company, with over half of the departures expected to come from management layers.
The majority of the restructuring is expected to take place in the second half of 2020.
"I truly regret that these difficult decisions will have to be made and understand the impact on the colleagues who will leave us. However, 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," said Chief Executive Chris O'Shea.
Centrica shares were trading 4.6% lower in London on Thursday at 39.89 pence each.
By Evelina Grecenko; [email protected]
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