Centrica to cut 4,000 jobs; first-half profit almost doubles
British Gas owner Centrica announced that it will cut up to 4,000 jobs following a strategic review as it posted a near doubling of its first-half profits.
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Half of the losses are expected to come through turnover and attrition and half through redundancies. The company said it will reduce its headcount by 6,000 across the group, not just in the UK, but will create 2,000 jobs.
Profit at the company’s residential business rose to £528m from £265m in the same period a year ago, while adjusted operating profits fell 3% to £1bn.
Centrica said it will cut its interim dividend by 30% to 3.57p and target cost efficiencies of £750m a year by 2020.
The company also said that as part of its strategy shift, it will dispose of up to £1bn of E&P and wind assets by 2017.
Chief executive Iain Conn said: “The conclusion of our strategic review provides a clear direction for the business.”
He added: “With Centrica delivering solid financial and operational performance in the first half of the year, and making good progress in strengthening its balance sheet and reducing net debt, the Group is well placed to compete materially against the emerging long-term trends in global energy markets.”