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News : Npower Confirms 2,400 Jobs Cut as Customers Flee
Worcester, UK, March 8, 2016 -- Energy provider Npower will axe 2,400 jobs in a bid to stem its spiralling losses after customers ditched the firm.
The German-owned utility said that a fifth of its "direct and indirect workforce" would go.
Npower lost money last year as customers fled in their droves after it made a series of billing blunders and mishandled customer complaints.
The problematic billing system was first introduced in 2011, and knocked Npower to the bottom of customer service league tables in the years that followed as the firm struggled to manage an avalanche of complaints.
A company spokesman said the job cuts would be made over a period of two years and would affect all parts of the company, including external support roles that work indirectly with the firm.
Around 350 workers at a call centre Burton-on-Trent in the north of England will be the first casualties of Npower’s cost cutting measures as the company shuts down units in its energy services business. But the full impact on UK-based workers is still unknown, the spokesman added.
Last year the troubled utility was slapped with a fine by industry regulator Ofgem. In November it received a stern warning from parent company RWE to come up with a plan to rescue it floundering finances.
RWE finance boss Bernhard Guenther said at the time that it would not rule out selling the troubled company "at some point".
The German energy company said it expected "further burdens" from its UK business in 2016, and warned of a "significant decline" in earnings at a group level.
RWE said last month it would be forced to scrap its dividend as market conditions worsen and it continues to grapple with changes to German energy policy.
Posted by Veronica Silva Cusi, news correspondent
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npower is one of Britain’s largest energy suppliers and supplies gas, electricity and related services to 6.6 million customers across the UK.
Published: Thursday, March 10, 2016