Severn Trent to axe 600 workers

Jun 6 2007 By Jon Griffin, Birmingham Mail

A HUGE programme of 600 job cuts at Birmingham-based Severn Trent was confirmed today.

The Sheldon-based group said a £24 million restructuring exercise would see the jobs disappear over a five-year period.

The group also warned it would not meet the annual average leakage target set by industry watchdog Ofwat.

Two months ago Severn Trent said jobs would go across the board at its main water business as part of what it said were efforts "to achieve higher standards".

In December last year, the group said it would be merging its head office functions with that of its main water division in a bid to squeeze out more savings.

Bosses said at the time the cuts would be "limited" among employees at the Sheldon headquarters and staff running the water operation.

But the utility group has said both full-time and agency staff would go over the next five years.

Meanwhile, Tony Wray has been announced as chief executive officer, with Colin Matthews stepping down at the end of this year.

The company, which employs 6,000 staff, supplies water and treats sewage for around eight million people in the Midlands and parts of Wales.