ScottishPower workers were told 160 jobs were to be axed just a week before Christmas.
The job losses will be in the retail arm of the firm and are expected to be offset with the recruitment of around 60 new digital staff positions.
Managers say the changes will make the company ‘fit for the future’.
But Ian Perth, negotiations officer for the Prospect union slammed the timing of the announcement made just before Christmas.
Mr Perth said: “The timing of this announcement is very disappointing as we come to the end of another extremely challenging year.
"Prospect welcomes the employer’s commitment to seek voluntary redundancies in the first instance.
“We welcome the opening of a voluntary register, however, compulsory redundancy may be a real possibility.
"We recognise that employers like Scottish Power Energy Retail are suffering from a lack of effective market regulation and that the company is making unsustainable year-on-year losses.
“However, that will be little comfort to anyone facing Christmas with the real risk of redundancy hanging over their head.
"It is in everyone’s interest that Scottish Power Retail becomes successful and sustainable.
“Prospect will work tirelessly with our trade unions colleagues to minimise job losses, and ensure any necessary redundancies are voluntary where possible."
In July, ScottishPower's retail customer base stood at around 4.6 million.
Headquartered in Glasgow, ScottishPower employs around 6,000 people across its divisions.
The redundancies news was broken to the workforce last week when many were making plans for the festive period.
The Spanish-owned energy saw a surge of £23 million of retail profits in the first six months of 2021.
But the firm reported losses of 40 per cent before interest, tax, depreciation and amortisation in October this year.
Andrew Ward, chief executive officer of ScottishPower’s UK retail division, insisted the redundancies would be voluntary and were essential as the company moves away from fossil fuels.
Mr Ward said: "As we continue to decarbonise and electrify how we live, work and travel, we need to ensure our retail business delivers for our customers and remains fit for purpose and competitive in the current challenging retail market conditions.
"As a result, we’re reviewing our organisational structure to ensure we have the right posts and people in place to best meet business needs as we continue to grow our renewables portfolio, support the move away from fossil fuels to heat pumps and electric vehicles, and grow our green hydrogen division.
"We expect this to result in an overall reduction of around 100 posts in our retail business – through voluntary redundancy – with the deletion of posts that are no longer required and the creation of new roles that will ensure we stay fit for the future.
"We appreciate this will be a worrying time for affected employees.
“Consultation is currently underway and we will support them through the process."
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