Energy giant npower is set to announce plans to move 1,400 jobs to India and transfer hundreds of others to another company.
The supplier is expected to confirm on Thursday it will outsource frontline call centre operations to a third party in the UK, with back-office work moved to India.
Employees in the Midlands and in the North of England are expected to be the worst affected.
The development emerged just a day after npower axed plans for a £4bn wind farm off the coast of Devon, also on cost grounds.
Its German owner RWE had warned earlier this month that 6,750 jobs would be cut across Europe.
An npower spokesman said: "As we announced a couple of months ago, npower has been undertaking a major review of sites, operations and people across the UK.
"We've been doing this to improve our customer service and keep our costs down, at a time of external pressures on customers' bills.
"As we've always said, we'll tell our people first and then inform the media."
The Unison union attacked the expected decision as a "Christmas nightmare for staff and customers" and warned the company it would backfire badly by damaging its reputation further among UK customers.
National officer Matthew Lay said: "npower have consistently let their customers and staff down by not investing enough in the workforce, technology or in the latest customer service techniques.
"This has led to a huge number of complaints which the company seems to think they can deal with by shifting the responsibility to somewhere else, including to India.
"If the company goes ahead with this disastrous plan, it will backfire badly, damaging their already tarnished reputation for customer service.
"At a time when unemployment is high, what commitment does it show to the UK by shipping these much-needed jobs abroad? And what does this say about their commitment to staff when npower have kept them on tenterhooks, waiting for the axe to fall, for weeks?"
The move is likely to spark renewed anger from politicians over the state of the energy market, and soaring energy bills faced by consumers.
Npower recently topped a customer complaints list, leading an energy watchdog Consumer Futures to describe its performance as "unacceptable".
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