Welsh Water has announced plans to reduce its workforce by around 500 roles over the next two years, representing roughly 12% of its 4,000-strong staff.
The move aims to improve efficiency in management and back-office functions while directing more funds to frontline water and wastewater services.
The company said the majority of job losses will be voluntary redundancies and acknowledged the impact on employees, pledging to manage the process with care, compassion, and fairness.
The programme is designed to maximise value for customers, allowing Welsh Water to invest further in its networks and environmental initiatives. This ensures money is focused on providing reliable water and wastewater services and supporting customers in need.
Over the next five years, Welsh Water plans to invest £4bn in frontline services, with more than half of this funding dedicated to improving environmental performance.
Water bills across Wales rose by 27% in April, reaching an average of £639 per household, with further increases expected until 2030. Utilities in both Wales and England have cited rising bills as necessary to fund improvements addressing leaks, sewage overflows, and other infrastructure challenges.
Recent figures revealed that Welsh Water recorded its highest number of sewage pollution incidents in a decade. The company admitted its performance is not at the required standard, amid criticism from environmental campaigners over a perceived lack of ambition in reducing water pollution.
In 2024, Welsh Water discharged untreated sewage into rivers, lakes, and the sea for a total of 968,000 hours. In October, the firm was ordered to pay a £24.1m underperformance penalty by industry regulator Ofwat. Additional fines include £1.35m for failing to monitor water quality at 300 sites between 2020 and 2021.
With Ofwat set to be replaced by a dedicated Welsh water watchdog, Welsh Water faces increasing scrutiny as it seeks to balance workforce reductions with environmental and customer service improvements.
