British domestic energy provider Centrica will axe 5,000 jobs, or almost one fifth of its workforce, as it responds to the coronavirus pandemic fallout and intense competition, it said.

The owner of British Gas said in a statement that a need for drastic restructuring, in the form of axing leadership, management and corporate staff, had been accelerated by the slump in energy demand triggered by the COVID-19 outbreak.

Centrica's job cuts mirror a move this week by sector peer BP, which said it would slash 10,000 mainly office jobs after plunging oil prices hit energy producers worldwide.

Centrica said all its jobs losses would go this year, in the first overhaul by newly-installed chief executive Chris O'Shea. The group employs more than 26,000 staff worldwide.

BP also recently changed its CEO, promoting Bernard Looney to the position, who said the British energy giant was encountering soaring debt levels.

Companies are meanwhile axing thousands of office jobs as they look to a post-coronavirus landscape where remote working becomes far more common. 

"Since becoming chief executive almost three months ago, I've focused on navigating the company through the COVID-19 crisis and identifying what needs to change in Centrica," O'Shea said in the statement.

"We've learnt through the crisis that we can be agile and responsive in the most difficult conditions and put our customers at the heart of our decision making," he added.

Centrica's restructure comes also as British Gas faces intense competition from new, smaller rivals in Britain's crowded energy market.

"We have great people, strong brands that are trusted by millions and leading market positions, but the harsh reality is that we have lost over half of our earnings in recent years," O'Shea said Thursday.

"Now we must bring focus by modernizing and simplifying the way we do business."

Centrica's share price dropped three percent in early London trade following the announcement.