In plans to simplify its business structure, Centrica has said it will be cutting 5,000 jobs.

The British Gas owner has a global workforce of 26,000, with about 80% of staff based in the UK.

Chris O’Shea, Centrica’s chief executive, said that a simplified business structure will help the company grow.

“I truly regret that these difficult decisions will have to be made and understand the impact on the colleagues who will leave us.”

“However, the changes we are proposing to make are designed to arrest our decline, allow us to focus on our customers and create a sustainable company,” he added.

Around half of the jobs lost will be from the corporate, management and leadership teams.

Justin Bowden, National Secretary of the GMB Union, has criticized the move.

He said: “A combination of the SVT cap and too little too late management decisions have left a once proud brand crippled and weak. Slashing thousands more jobs is not the answer. You cannot just cut your way out of a crisis.”

Centrica is one of many companies to announce job losses this week. Mulberry and Lookers have also said they will be carrying out redundancies this year.

Shares in the group (LON: CNA) are trading down 3.43% at 40.39 (1047GMT).