E.ON announces £500M restructuring for Npower

Friday, 29. November 2019 09:39

German electric utility E.ON has a reorganization plan for its British subsidiary Npower Limited that may require the investment in the range of £500 million, the company announced on Friday. The Essen-based firm aims to merge computer systems in order to reduce the cost of one of the six largest United Kingdom's energy providers. At the same time, E.ON is reportedly expected to cut 4,500 jobs in its division in Swindon.

"The UK market is currently particularly challenging. We've emphasized repeatedly that we'll take all necessary action to return our business there to consistent profitability," E.ON's chief executive Johannes Teyssen said in a statement.

Last year, Npower discussed a merger with SSE plc amid the introduction of the new energy price cap and "tough market conditions."

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