Dŵr Cymru Welsh Water has announced that it will be undertaking a significant transformation programme over the next 18-24 months which will include the restructuring of business and a cut in its workforce of up to 12%.
As part of the programme, the company is reviewing its entire cost base, including the goods and services it procures, and expects to reduce its workforce by c12% (up to 500 roles) over the next 18-24 months from its current workforce of about 4,000. The intention is to protect and enhance frontline services and to increase efficiency in ‘back office’ and managerial positions.
The programme is designed to safeguard essential services, strengthen service resilience, reduce ‘back office’ costs and deliver better value for money by ensuring that as much customers’ money as possible is directed into improving frontline water and wastewater services.
As part of the programme, the company is reviewing its entire cost base, including the goods and services it procures, and expects to reduce its workforce by c12% (up to 500 roles) over the next 18-24 months from its current workforce of about 4,000. The intention is to protect and enhance frontline services and to increase efficiency in ‘back office’ and managerial positions.
The transformation will focus on reshaping the organisation, enabling greater use of technology and data and redesigning processes and ways of working. The transformation programme aims to maximise efficiency so that every possible pound can be invested in customer service, environmental improvements, and vital network investment.
Welsh Water said that the restructuring will help maintain the company’s financial resilience and the programme will ensure that the business remains on a long term financially stable and sustainable footing while continuing to improve services for customers.
According to the water company, the changes are taking place against a backdrop of significant pressures on the water sector. In the past year, the industry has been downgraded by credit ratings agencies, at a time when investment needs have increased to fund improvements in infrastructure and the environment following the recent price review with Ofwat.
Workforce cuts - CEO says "we will handle the process with care, compassion, and fairness"
Pete Perry, Chief Executive of Welsh Water, who announced in April this year that he plans to retire in Spring 2026, said:
“Customers rightly expect us to invest in improving our services and to keep our own costs to a minimum – and that’s exactly what this programme will achieve. Our customers’ expectations have changed significantly in recent years, as have our regulatory requirements, and as a company we need to adapt. With customers’ bills increasing, we have challenged ourselves hard to reduce our own costs to ensure every pound we spend brings benefit to customers and maintains our financial resilience during a challenging period for the sector.
“I fully recognise that this will be an unsettling time for colleagues affected. We have not undertaken changes on this scale for more than a decade, and we will handle the process with care, compassion, and fairness. Wherever possible, we will prioritise voluntary exits, retraining, and redeployment, and we will work closely with our trade unions and provide full support to every colleague impacted.
“We are acting now so we can protect services for customers, investing more in our networks and the environment, and ensure that as much of our customers’ money as possible goes into the things that matter most: reliable water and wastewater services and support when people need us.”
At the end of August the not-for-profit utility announced the appointment of Roch Cheroux as its new Chief Executive - Roch will join the company on October 6th and formally take on the role of Chief Executive in the New Year.