Up to 150 jobs are set to be cut at Drax Power Station in Yorkshire as part of a transatlantic restructure that union leaders have condemned as a devastating blow to workers and the local community. The power station operator, based between Goole and Selby, announced last month it would consult with staff in both the UK and US about reducing its workforce by 350 positions across the two countries. A letter to employees has now revealed that between 89 and 148 roles may be eliminated at the Yorkshire site, representing up to 31 percent of the 465 total staff at Drax Power Station.
The proposed Drax job cuts have sparked sharp criticism from the GMB union, which represents workers at the facility. According to GMB senior organiser Deanne Ferguson, the redundancies come after the company received substantial public funding, creating what she described as behaviour that could damage the reputation of net zero initiatives. She called on government ministers to intervene in the situation.
Restructuring Plans at Drax Power Station
The letter sent to Drax employees outlined the company’s rationale for the organizational changes, stating the need to operate efficiently within required financial parameters. Management cited the Low Carbon Dispatchable Contract for Difference as a key factor driving the restructure. This contract allows the power station to continue operations and explore future options, but necessitates changes to team structure and roles across the site, according to the company.
Additionally, Drax indicated it would seek to minimize compulsory redundancies through consultation around voluntary departure options. The FTSE 250 listed company emphasized that the restructure is designed to build what it calls a strong and resilient business for the future. The firm stated the changes are crucial to its long-term success and continued commitment to UK energy security and supporting the energy transition.
Company Response and Future Strategy
When first announcing the restructure earlier this month, Drax highlighted its focus on driving growth in flexible generation business. The biomass power station operator pointed to the recently signed low-carbon dispatchable Contract for Difference agreement as recognition of the important role the facility will play in UK energy security into the 2030s. The company stressed that the proposed job losses do not reflect negatively on employee professionalism and commitment.
However, the timing of the redundancies has raised questions given recent investment announcements by the company. At the end of last year, Drax revealed plans to establish a data centre at its Yorkshire site, potentially operational by 2027, with up to £2 billion allocated for incremental investment in flexible and renewable energy. The company also completed a £157.2 million acquisition of three battery energy storage system projects, including one in Marfleet, Hull.
Impact on Local Community
The potential loss of up to 150 positions represents a significant impact on the regional economy where Drax operates as a major employer. Meanwhile, the company maintains that adapting its organizational structure is essential for creating new options and opportunities at the power station beyond 2031. Drax also emphasized its commitment to advancing future uses of sustainable biomass as part of its evolving strategy in response to the changing global business and energy landscape.
The consultation process with affected employees and union representatives is currently ongoing, though Drax has not confirmed a timeline for final decisions on the redundancies. The company stated it will work closely with unions and elected employee representatives as it implements the proposed changes, though uncertainty remains about whether ministerial intervention will occur as the GMB has requested.
