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Up to 500 jobs are set to be lost at Dŵr Cymru Welsh Water as part of a major restructuring programme announced today.

The not-for-profit company, based new Nelson, employs around 4,000 people. It will reduce its workforce by around 12% over the next 18 to 24 months.

The cuts will mainly affect back-office and managerial roles, with the company insisting that frontline water and wastewater services will be protected.

Welsh Water said the move is part of a “significant transformation” of its operations aimed at cutting costs, making greater use of technology, and directing more money into infrastructure, environmental improvements and customer service.

Chief executive Pete Perry admitted it would be an “unsettling time” for staff.

He said: “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.”

The company said the shake-up comes against a backdrop of financial pressures across the water sector, including recent credit rating downgrades and the need to fund major investment in infrastructure.

Mr Perry added that with household bills rising, the company had to “challenge ourselves hard to reduce our own costs to ensure every pound we spend brings benefit to customers”.

New Welsh Water boss faced union criticism in Australia

Welsh Water’s incoming chief executive, Roch Cheroux, arrives with a long international track record in the water industry – but also a mixed legacy at his last role in Sydney.

Cheroux led Sydney Water, Australia’s largest water utility, from 2019 until earlier this year. While the company credited him with overseeing a huge increase in capital investment and a drop in customer complaints during a period marked by bushfires, drought and the Covid pandemic, unions were sharply critical of his leadership.

The Australian Services Union (ASU), which represents Sydney Water workers, described his departure as a “long-overdue opportunity to reset the workplace”. It accused Cheroux of pursuing outsourcing, attacking workers’ rights and overseeing a decline in staff morale.

In a statement, released earlier this year, ASU secretary Angus McFarland said: “Sydney Water is a vital public asset, yet under Cheroux’s watch, it has been hollowed out. Worker morale has plummeted, wages and conditions have been under siege, and taxpayer money has been squandered on private consultants.”

The union claimed Sydney Water increasingly relied on outside contractors, including some linked to Cheroux’s previous employers, while staff faced attempts to cut wages and conditions. Workers, it said, rejected “what would have been the worst enterprise agreement in the water industry”.

Cheroux will formally take over at Welsh Water in the New Year, succeeding Peter Perry, who plans to retire in 2026.