Power company Drax has confirmed a significant organisational restructuring that will result in approximately 350 redundancies across its operations in the United Kingdom and North America. The FTSE 250 firm, which operates the UK's largest power station in North Yorkshire, stated the move is part of strategic efforts to build a more resilient business for the future.
Strategic Shift Towards Flexible Generation
The company emphasised its renewed focus on driving growth within its flexible generation business, creating new opportunities at Drax Power Station beyond 2031, and advancing future applications of sustainable biomass. This strategic evolution comes as the global business and energy landscape continues to develop rapidly.
Drax highlighted that the recent signing of a low-carbon dispatchable Contracts for Difference (CfD) agreement recognises the crucial role Drax Power Station will continue to play in UK energy security throughout the 2030s. The power station currently generates approximately 5% of the nation's electricity, predominantly from sustainable biomass sources.
Consultation Process Underway
The company has now initiated a formal consultation process with affected staff in the UK and will be briefing colleagues in North America about the proposed changes. Drax stressed that these workforce reductions do not reflect on the professionalism, passion, or commitment demonstrated by employees, pledging to support affected colleagues throughout the transition.
"We believe these changes are key to our long-term success and our continued commitment to deliver UK energy security and to support the energy transition," a company spokesperson stated. "We will work closely with our unions and elected employee representatives as we implement these proposals."
Recent Strategic Investments
The restructuring announcement follows several significant strategic moves by Drax in recent months. At the end of last year, the company revealed plans to establish a data centre at its Yorkshire site, repurposing existing infrastructure at the power station located between Selby and Goole. The facility could become operational as early as 2027, with Drax indicating plans to allocate up to £2 billion for incremental investment, primarily in flexible and renewable energy projects.
Just a month earlier, Drax struck a £157.2 million deal to acquire three ready-to-build battery energy storage system (BESS) projects from Apatura. These sites are located in Marfleet in Hull, Neilston in East Renfrewshire, Scotland, and East Kilbride in Lanarkshire, Scotland, representing significant investments in energy storage infrastructure.
Union Criticism and Response
Union representatives from GMB have strongly criticised the redundancy plans, accusing Drax of betraying its employees and the communities that have supported the company. Deanne Ferguson, GMB senior organiser, expressed concern about the impact on skilled energy workers.
"You cannot build a low-carbon future by making skilled energy workers redundant," Ferguson stated. "Drax has benefited from substantial public subsidies yet has betrayed the workforce and supporting communities. A just transition requires secure jobs, proper planning, and workers at the heart of change. Ministers must intervene to ensure reality matches their rhetoric."
The union has pledged to fight for affected workers' rights and secure employment throughout the transition period, emphasising the importance of maintaining skilled positions within the evolving energy sector.
