Centrica, the parent company of British Gas, has decided to forgo funding Christmas parties for its entire workforce this year, despite recording profits of £1.7 billion in the previous year. The company, which recently announced over 200 job cuts, has encouraged its 21,000 employees to mark the festive season in localized ways such as virtual messages and volunteer work.

However, in a contrasting move, Centrica organized an extravagant black-tie event at the upscale Park Plaza hotel in Westminster for a select group, including sales teams, senior management, and partners. The celebration, held on Saturday night, reportedly hosted several hundred attendees and their partners.

Jill Shedden, the group’s chief people officer, conveyed in a message that due to organizational efficiency measures and staff departures, the decision was made to cancel company-wide Christmas parties. This decision was made despite Centrica’s substantial profits, notably £427 million from British Gas alone.

Centrica’s CEO, Chris O’Shea, who received £4.3 million in pay and benefits in the previous year, acknowledged the challenges of justifying his compensation during a BBC interview in early 2024. The move to cancel Christmas parties while hosting an exclusive event was criticized by Andy Prendergast from the GMB union, emphasizing the insensitivity of such actions amid job cuts.

A Centrica spokesperson defended the decision, citing the need for efficiency and respect for departing colleagues as the rationale for canceling organized Christmas events. They clarified that the recent event was not a Christmas party but part of their operational focus.