An announcement today suggests that a downturn in the UK property market is to blame for E.ON UK making 400 voluntary redundancies, approximately 10% of its workforce.

Dr Paul Golby, Chief Executive of E.ON UK, said: "This was not an easy decision for us to take, but this is the first step as we take a long hard look at our costs, so keeping them as low as possible to ensure we offer customers the best possible service at the lowest cost.  Going forward we can’t rule out further announcements as we look to make our business leaner and more efficient so that we can make energy as affordable as possible for our customers."

E.ON is one of the UK’s leading power and gas companies – generating and distributing electricity, and retailing power and gas – and is part of the E.ON group, the world’s largest investor-owned power and gas company.  It employs around 17,000 people in the UK and 4,400 in its Energy Services arm.  The job cuts will be made in the Energy Services business with reductions of 150 in home installations, 100 in metering, 75 in new connections and 75 in back office staff.

Hot on the heels of Gordon Brown’s appeal for energy prudence last week and the stock market slide this week, E.ON’s move seems to be in line with the harsh realities of the hard times that lie ahead.

Mini-Post by Alan Potts

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