Centrica PLC Simpler Customer-Focused Business Model (6005P)
June 11 2020 - 2:15AM
UK Regulatory
TIDMCNA
RNS Number : 6005P
Centrica PLC
11 June 2020
11 June 202 0
Centrica plc
('the Company')
CENTRICA ANNOUNCES A SIMPLER AND MORE CUSTOMER-FOCUSED BUSINESS
MODEL
Centrica plc has today announced plans for a significant
restructure designed to create a simpler, leaner Group focused on
delivering for our customers.
The company will have fewer customer-facing business units all
of which will report directly to the CEO. Three management layers
will be removed to create a flatter, less bureaucratic organisation
which is closer to, and focused on, the customer. As a result of
these changes, around half of the current 40 strong Senior
Leadership Team will leave the group by the end of August.
The revised operating model is expected to accelerate the
delivery of targeted cost savings and lead to a reduction of around
5,000 roles across the Group, with over half of the departures
expected to come from management layers. The majority of the
restructuring is expected to take place in the second half of 2020,
following consultation on the proposals with our colleagues.
In addition to the proposed new organisational design, the
company will today start consultation to simplify terms and
conditions for employees in the UK. Centrica has over 80 different
employee contracts, each with multiple variants, with many of the
agreements dating back over 35 years. We need to modernise these to
enable us to best serve the changing expectations of today's
customers while retaining the quality of our services.
Commenting on the changes, Centrica Group Chief Executive Chris
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."
Ends
Investors and Analysts
T: 01753 494900
E: ir@centrica.com
Media Relations
T: 01784 843000
E: media@centrica.com
Ce ntr ica p lc is lis t ed on t he L o n don Stock E x c h a
nge (CN A)
Regis t e r ed O ff ice: Mills t r ea m, M a i de n h e ad Ro a
d, W i n d s o r, B e r ksh i re S L45GD
Regis t e r ed in E n g l a nd & W a l es n u m be r: 3 0 3
3654 Leg al E n t i ty I de n t i f i er n u m be r :E 26 EDV 109 X
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I S I N n u m b e r: GB00 B 03 3 F 2 29
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END
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