Personal Finance Information

Water supplier to cut hundreds of jobs to improve efficiency

According to recent reports the second largest water supplier in the UK, Severn Trent Water, is planning to cut around six hundred jobs over the next five years in a bid to reduce costs and improve efficiency. The six hundred jobs will be a combination of frontline staff, field operatives, and back office positions. Around six thousand staff members, both permanent and agency workers, are currently employed by the water supplier.

According to the managing director of Severn Trent Water, Tony Wray, the cutbacks will enable the company to ultimately improve services and efficiency for their customers. He stated: "This is all about improving efficiency. Our customers deserve the highest standards and lowest charges we can get for them. If you get more efficiency, then you can do more with less." Unions and staff member are now receiving consultations, he also confirmed.

Severn Trent has come under fire a number of times over recent years by regulatory bodies. In 2005 the company was accused by the Serious Fraud Office of supplying incorrect information to Ofwat with regards to leakage levels. It was also criticized by Ofwat for failure to properly control leakages, losing around 540 million liters of water every day last year.

According to Mr Wray the savings made by cutbacks in staffing levels will enable the water supplier to carry out further improvements in its equipment and services, and this will lead to an improvement in service and efficiency for customers. He added that improve systems that would be put in place at Severn Trent would eliminate the need to have so many staff members, and he said that the company expects to make further announcement relating to the job losses in June.