E.On plans 500 job cuts in the UK

E.On, the German power and gas utility firm, has announced plans to reduce its workforce in the UK by as many as 500 employees.

The cuts, which the group hopes to make through voluntary redundancies, will be made at its head office in Coventry and its Nottingham-based centre.

Chief executive Paul Golby said: "We had to undertake a deep and rigorous review of how much money we spend in order to ensure we keep costs as low as possible for our customers, become a more agile organization and build a sustainable business in the UK."

He added: "While I'm very aware that this will be a difficult time for our colleagues, it is our aim to keep uncertainty to a minimum and to achieve these redundancies by voluntary means."

The cost-cutting move will be undertaken to reflect the organisational changes at E.On after it sold its distribution arm, Central Works, earlier this year.

In August the group unveiled plans to cuts costs by €1.5bn before 2015 in a move which could see as many as 11,000 job cuts.

Golby and his fellow directors were paid, in aggregate, £3,86m in 2009, according to E.OK UK's accounts, with the highest paid director receiving an annual salary of £574,975, while the biggest bonus paid that year to a director was £0.5m. The highest long term incentive payment received by an E.On Uk director in 2009 was £426,636.

Lower gas prices from its competitors have seen E.On struggle in recent months, while the shutdown of one other the firm's nuclear reactors has only added to its woes.

The share price was down 3.93% to €14.68 by 13:05.