Highlands and Islands Labour MSP Rhoda Grant reacts to Scottish Gas owner Centrica's plans to cut 5000 jobs
Scottish Gas owner Centrica has announced it is to cut 5000 jobs this year in an attempt to halt the decline of the company.
Centrica has been losing customers to other energy suppliers and last year was hit by the energy price cap and falling gas prices.
It is not clear yet exactly where all of the 5000 jobs will be cut from, though around half of the cuts will take place in management and corporate functions.
A total of 20,000 of the company's 27,000 staff employees are based in the UK.
The firm owns British Gas as well as Scottish Gas.
Highlands and Islands Labour MSP Rhoda Grant said she will be writing to chief executive Chris O'Shea to ask for more details on the plan.
“This is awful for all those dedicated, hard-working people who will be extremely distressed," she said.
"It’s also a terrible blow for the economy too and if the company is in such dire straits I expect they won’t be paying dividends to their shareholders.
"This announcement means that the need for a new Energy Jobs Taskforce within the Scottish Government with a remit to protect jobs in the industry is now more urgent than ever and that’s what Scottish Labour will continue to call for.”
Mr O’Shea said: “Since becoming chief executive almost three months ago I’ve focused on navigating the company through the Covid-19 crisis and identifying what needs to change in Centrica.
"We’ve learnt through the crisis that we can be agile and responsive in the most difficult conditions and put our customers at the heart of our decision making.
"However, I believe that our complex business model hinders the delivery of our strategy and inhibits the relentless focus I want to give to our customers.
"We have great people, strong brands that are trusted by millions and leading market positions, but the harsh reality is that we have lost over half of our earnings in recent years. Now we must bring focus by modernising and simplifying the way we do business.
"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.”
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Justin Bowden, a spokesman for the GMB union, said: "A combination of the energy price cap and too little, too late management decisions have left a once proud brand crippled and weak. Slashing thousands more jobs is not the answer. You cannot just cut your way out of a crisis."
