There will be a total of 222 job losses at OVO Energy in Perth, it has been confirmed.
The energy firm earlier revealed it was making hundreds of people redundant and closing down its offices in Dunfermline and Perth, despite promising there would be no job losses when it bought over SSE’s retail arm in 2020.
The CEO of OVO’s retail arm, Adrian Letts, has now clarified the number of expected redundancies in talks with Perthshire politicians.
The remaining employees are permanently working from home.
However, Mr Letts said a high uptake of voluntary redundancies means no further compulsory redundancies are expected.
Significant impact on local economy
Mr Letts updated the position with Pete Wishart, MP for Perth and North Perthshire, John Swinney, MSP for Perthshire North, and Jim Fairlie, MSP for Perthshire South and Kinross-shire.
Mr Wishart says the 222 job losses in Perth will have a significant impact on the local economy.
“It is reassuring to hear that OVO are not making any compulsory redundancies following a high uptake of their voluntary redundancy programme,” he added.
“However, the news that over 222 jobs are set to be lost in Perth is still a devastating blow to the local labour market.
“These are people who live and socialise in the area, providing business to local amenities, and who may now be planning to move elsewhere.”
Perth office cannot be left vacant
Mr Swinney said he is keen to look at how many of the 222 taking voluntary redundancy have already secured a new job.
He said: “The loss of 222 jobs will still have a potentially serious impact on the local Perthshire economy.
“To that end, I am keen to get further information regarding the status of those taking voluntary redundancy, with a particular emphasis on how many have found new jobs.
“OVO have agreed that they will look into this matter for us and report back with their findings.”
All three added they want to make sure the Perth OVO office, which housed 700 people before the coronavirus pandemic, is not “left to rot”.
Mr Fairlie said: “I am pleased that a high percentage of Perth-based employees have taken the decision to stay with the company, but will be pressing them to ensure that the promised permanent home working support is adequately delivered.
“It is vital that the Perth office finds a new purpose, and I am keen to work to find a business who can give a long-term commitment to the site.”
Conservatives: ‘Sign of the times’
Conservative MSP Liz Smith added: “We haven’t heard of any compulsory redundancies among OVO’s Perth staff, but this is still bitterly disappointing news.
“It is a blow for local families and a blow to the Perth economy.
“While many OVO Perth staff will be working from home, this decision means the end of a presence at the Perth site, and seems sadly to be a sign of the times.”
Fellow Mid Scotland and Fife MSP Murdo Fraser added: “This announcement will be a big blow to the local economy, and means the Perth site will become vacant.
“Perth has had its share of sizeable sites being closed in recent years, so we will ask again if the Scottish Government will consider moving some jobs to this location.
“One positive aspect we do welcome here, is the fact that so many Perth OVO staff will continue to work from home, after we called for this to happen.”
OVO Energy was approached for comment.
