UK’s OVO Energy to cut roughly 1,700 jobs -Sky News

(Reuters) – British gas and electricity supplier OVO Energy will cut a quarter of its workforce as part of a restructuring aimed at saving costs amid a deepening industry crisis, Sky News reported on Wednesday.

OVO could announce details of its plans as soon as Thursday, with roughly 1,700 out of 6,200 roles expected to be lost as part of a voluntary redundancy programme, the report added.

OVO declined to comment on the report.

The COVID-19 pandemic had previously led the energy supplier to lay off employees and close offices in an attempt to restructure its businesses.

Soaring UK wholesale energy costs have put pressure on the industry, with more than 20 energy companies, often supplying both gas and electricity to homes and businesses, having collapsed.

Sky said OVO is also expected to announce an increase in minimum pay to 12 pounds-an-hour ($16.44-an-hour) across the company, and plans to “reshore” all customer-facing jobs to the UK.

($1 = 0.7298 pounds)

(Reporting by Radhika Anilkumar in Bengaluru; Additional reporting by Shivani Tanna; editing by Jonathan Oatis and Richard Pullin)