Hundreds of jobs at an electricity distribution company in Sandwell are being axed following a £4 billion takeover.

Western Power Distribution, which recently acquired Central Networks, is scrapping 580 jobs at its West and East Midlands operations.

Half of those will go from its base in Toll End Road, Tipton, and the rest from a site in Castle Donington in the East Midlands.

Union negotiators today said control room staff, engineers and linesmen involved with the day-to-day distribution of electricity would be safe. But the company is scrapping scores of finance, human resources, administration and other staff.

It also does not want to continue the work that Central Networks and parent company E.on were doing to investigate green technologies such as low carbon generation.

Sharon Cross, spokesman for the company, said: “We can confirm that we are consulting with the trade unions regarding staff reductions.”

Richard Hardy, negotiator for the Prospect trade union, said: “WPD have been referring to these staff as overheads, which is a term we have asked them to stop using because we find it offensive.

“A lot of people had roles with E.on that WPD has decided it can do without.

“Altogether the company has identified 830 roles that it says it no longer needs but there are currently 240 vacancies. We are now a few days into a 90-day consultation but these jobs will go.”

A number of roles are expected to be re-located to Bristol.

Western Power Distribution is owned by American giant PPL Corporation of Pennsylvania.

It acquired Central Networks from E.on in a deal worth £4bn in March.

Workers at the Toll End Road site expressed their shock and upset at the news of such substantial job losses.

One worker, who asked not to be named, said: “We were all extremely shocked. What is most worrying is that we just don’t know the details at the moment. We feel as if we are in limbo.”