Ovo Energy has now told staff it will cut a quarter of its workforce and axe 1,700 employees, according to the BBC News.
The developments confirm reports of mass redundancies first covered by Sky News yesterday.
The job cuts are reportedly linked to its acquisition of SSE three years ago and its integration of the firm into its own business.
The UK’s third biggest electricity and gas supplier will look to make the cuts through voluntary redundancy,
Ovo has also told staff it will raise minimum pay across the firm to £12 an hour.
The redundancies follow a wider energy crisis which has led dozens of suppliers to collapse amid soaring wholesale gas prices.
It also comes two days after Ovo was forced to apologise for handing out advice to its SSE customers to save energy bills by cuddling pets, eating porridge and doing star jumps.
The job cuts come just days after Ovo Energy was forced to apologise for sending advice to customers to cuddle their pets to keep warm.
Chief executive Stephen Fitzpatrick told the BBC the advice was “ridiculous”, with the energy firm withdrawing the advice after intense criticism.
Ovo Energy declined to comment when approached by City A.M.