German energy firm Eon has said it will cut between 500 and 600 jobs in the UK as it battles with fierce competition and the impact of the energy price cap.
The company, which has roughly 9,000 employees in the UK, said it has informed staff of plans to reduce its headcount across support activities and managerial positions.
“Suppliers in the UK energy market are facing a significant threat to their futures in a market that continues to be extremely competitive but that is also massively distorted by the energy price cap and the many firms now seemingly content to run at a significant loss,” Eon said in a statement.
“Only companies that continue to evolve and adapt to the nature and challenges of the market will be able to succeed.”
In August Eon posted a sharp fall in profit for the first half of the year, which it blamed on the impact of the UK’s new energy price cap.
The firm has also taken control of rival Npower following a €40bn (£34.5bn) asset swap deal with parent company Innogy.
Eon chairman Johannes Teyssen has been frank about the challenges posed by this new ailing subsidiary, describing it as an “open wound that is bleeding profusely”.
Eon said it will consult fully with trade unions of the proposed UK job cuts.
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