OVO Energy is reportedly to cut a quarter of its 6,200-strong workforce amid the continued volatility in the energy supply market. Sky News yesterday (12 January) reported that the plans could be announced by OVO Energy as soon as today, with these job loses expected to be past as a voluntary redundancy programme. The restructuring would be aimed at saving costs in the face of the current energy crisis, Sky News reported, although it also reported a potential pay increase for remaining employees.
Current 13th Jan 2022 read more »
FT 13th Jan 2022 read more »
Ovo has enjoyed huge success over the last decade, becoming the country’s third largest energy supplier within 11 years and breaking new ground on technology. But now the company, and its 44-year-old chief executive face all the strains and scrutiny of being responsible for a vital service for millions – at the toughest of times. Fitzpatrick appeared on BBC Radio 4’s flagship Today programme this week, making amends after Ovo’s retail division SSE Energy Services, which it acquired in 2020, sent out a misjudged email to customers with energy-saving tips including doing star-jumps, eating porridge and ginger, avoiding alcohol and wearing socks made of Merino wool. Still digesting its SSE acquisition, Ovo has not taken on customers of failed rivals during the latest wave of collapses, avoiding some of the £2bn costs others have collectively accumulated. On Thursday Ovo announced plans to cut 27pc, or 1,700 roles, of its 6,200 workers through voluntary redundancy, drawing a rebuke from the Unite union which promised to “do everything in our power to defend our members’ jobs”. With the price cap designed to force companies to be more efficient, few are going to keep on more employees than they need. “I think it’s that efficiency challenge very much coming home to roost,” says Martin Young, analyst at Investec. Ovo also remains loss-making, although it is heading in the right direction. Ovo Group, which owns Kaluza as well as the energy retail business, made sales of £4bn in 2020 and an underlying pre-tax loss of £66m – well below the loss of £107m in 2019.
Telegraph 14th Jan 2022 read more »