npower has confirmed that it will be cutting 2,400 jobs based in the UK - roughly one-fifth of its workforce – after announcing loses of £106 million for 2015.

The decision has left service providers contracted by the company uneasy. On the one hand, the decision could result in increased outsourcing as npower looks to save money in other areas, but existing outsourcing contracts are equally likely to be cut for similar reasons.

npower experienced a tumultuous 2015, losing 351,000 customer accounts, and being subject to a record £26 million fine in December, provoked by the sheer quantity of customer complaints over billing received throughout the year.

Paul Coffey, chief executive at npower, attributed the failures to a business trying to do “too much, too soon”, while Unison general secretary Dave Prentis has accused the German-owned company of not being “committed to its UK operations”.

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