Centrica Cancels Staff Christmas Parties While Hosting Exclusive Gala

Centrica, the parent company of British Gas, has decided to cancel its annual Christmas party for its 21,000 employees, while hosting an extravagant black tie event for select staff. The company announced that it would not provide the £35 per person allowance for festive celebrations this year, despite reporting an impressive operating profit of approximately £1.7 billion in 2024.

In a communication to employees, Jill Shedden, Centrica’s chief people officer, stated the decision was made to improve organizational efficiency, particularly in light of recent job cuts affecting over 200 staff members. She noted, “We know that festive celebrations are appreciated by many, and this decision has not been taken lightly.” Shedding light on the company’s rationale, Shedden encouraged employees to explore “locally relevant ways to celebrate,” suggesting options like sending “virtual messages of appreciation” and volunteering.

While the majority of Centrica’s workforce faces the disappointment of cancelled holiday festivities, a select group was invited to a lavish gathering on November 15, 2024, at the upscale Park Plaza hotel in Westminster, London. Reports indicate that several hundred people, including sales staff, senior management, and their partners, were invited to the event, which was intended to recognize their achievements.

The juxtaposition between the cancelled Christmas parties and the exclusive gala has drawn criticism. Andy Prendergast, national secretary at the GMB union, expressed outrage at the company’s decision. He stated, “It’s breathtaking a company like this can hold exclusive black tie events for some, whilst cancelling Christmas for everyone else.” He added that the knowledge of some employees celebrating with champagne while others face redundancy only “adds insult to injury.”

Centrica’s leadership, including CEO Chris O’Shea, has faced scrutiny regarding its compensation practices. O’Shea reportedly earned £4.3 million in salary and benefits last year, following a previous total of £8.3 million in 2023. During a BBC interview earlier this year, he acknowledged that his remuneration was “impossible to justify,” attributing it to decisions made by the company’s pay committee.

In response to the backlash, a spokesperson for Centrica reiterated the company’s commitment to efficiency. “We’re always focused on being more efficient to ensure we have resources in the right areas as we grow our businesses,” the spokesperson stated. “That means we’re having to make difficult decisions to reduce some management roles. We need to ensure we’re respectful to these colleagues, and we think not having organised Christmas parties at this time is the right thing to do. The event this week is not a Christmas party.”

The decision not to fund holiday celebrations has added to the tension within the workforce, as employees grapple with the realities of impending job losses while witnessing a lavish event for a chosen few. The situation raises broader questions about corporate priorities and employee morale in times of financial prosperity.