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Centrica Names New Group CFO; Units CEOs Resign Under Restructure; To Cut 5,000 Jobs; Stock Dips

Energy and services company Centrica plc (CNA.L) announced Thursday the appointment of Johnathan Ford as Group Chief Financial Officer with immediate effect. He will also join the Centrica Board.

Further, as part of a wider Group restructuring, the company announced that Sarwjit Sambhi, Chief Executive, Centrica Consumer and Richard Hookway, Chief Executive, Centrica Business will step down from the Board. They will leave the Company by the end of July.

Under the company's plans for a significant restructure, it will have fewer customer-facing business units all of which will report directly to the CEO. Around half of the current 40 strong Senior Leadership Team will leave the group by the end of August.

The role of Chief Executive, Centrica Consumer and Chief Executive, Centrica Business will not be replaced.

Three management layers will be removed to create a flatter, less bureaucratic organisation which is closer to, and focused on, the customer.

The company added that the revised operating model would accelerate the delivery of targeted cost savings and lead to a reduction of around 5,000 roles across the Group. Over half of the departures are expected to come from management layers.

The majority of the restructuring is expected to take place in the second half of 2020.

Ford succeeds Chris O'Shea, who was appointed as Group Chief Executive on an interim basis in March and on a permanent basis in April, after Charles Berry stepped down following doctors'advice to reduce workload. Ford was previously the Chief Operating Officer and Chief Financial Officer of Homeserve plc.

Centrica further announced the appointment of Carol Arrowsmith as Non-Executive Director with immediate effect.

In London, Centrica shares were trading at 40.22 pence, down 3.85 percent.

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