NPOWER's "ridiculous" decision to axe 400 workers will come back to haunt them, a former employee has been warned today.

Bristnall councillor and former Npower employee slammed the company after it announced the closure of Quayside House in June despite recording massive profits.

He said: "This is a bitter Christmas present to deliver to hundreds of worried Npower staff of Oldbury and as a former employee of the company with many friends still in the industry I feel a great sadness.

"To suggest it’s because they are struggling is ridiculous, with profits exceeding £300 million and bumper pay-outs to shareholder since there recent price hike last November, you have to question their actions."

Cllr Frear believes people in Oldbury will switch away from the company, which also increased prices by 10.4 per cent this week. He added: "I can’t help feeling this will backfire on Npower and I would be interested to see how many families and businesses will leave Npower with the same abandonment they have left there hard-working and loyal Oldbury staff."

Npower will outsource the 400 OIdbury axed job roles to Indian firm Tata Consulting in a bid to save cash.

Rob Sawle, Npower’s head of customer accounts, said: “The announcement is really hard for our people who work here in Oldbury. The teams here have done a fantastic job for us and we’ll do everything we can to look after everyone’s affected.”

“As a business, we’re operating in extremely tough times and we’ve had to look at what’s right for the long term future of the company."