npower to close Stoke operation as it plans 1,400 job cuts

MIDLANDS-based energy giant npower is expected to announce the closure of its Stoke-on-Trent site this morning as part of a restructuring of its UK operations which will see 1.400 jobs lost.

Its sites at Peterlee in Durham and Thornaby in North Yorkshire are also to be closed, it is understood.

Some of the Worcester-based firm’s back-office operations are likely to be outsourced to India.

npower announced a major overhaul of its UK operations in August.

In a statement the firm said: “As we announced a couple of months ago, npower has been undertaking a major review of sites, operations and people across the UK.

“We’ve been doing this to improve our customer service and keep our costs down, at a time of external pressures on customers’ bills.”

npower’s parent company, German power giant RWE, announced plans earlier this month to cut 6,750 jobs across Europe and reduce costs by 1bn euros (£840m).

The company announced the cuts would be carried out between 2014 and 2016, in a bid to tackle low wholesale prices for energy and an increase in renewable capacity.

Last week npower took further steps to improve its financial situation by agreeing to sell two subsidiary companies to Telecom Plus for £218m.

London-based utility services provider Telecom Plus is acquiring Electricity Plus Supply and Gas Plus Supply.

npower has other regional operations in Solihull and Oldbury.