Centrica, the FTSE 100-listed owner of British Gas, announced plans to cut 1,300 positions from its customer service operations as part of a strategic shift toward digital customer interactions. The reductions include 800 jobs from targeted artificial intelligence deployment, supplementing 500 cuts announced earlier. The positions are distributed across facilities in Glasgow, Edinburgh, Cardiff, Leicester, Stockport, and Leeds, representing a 14% reduction in the supplier’s customer service workforce. The transition is expected to occur over two years, with unfilled vacancies from resignations accounting for part of the reduction, while the remainder will result from redundancies.
Chris O’Shea, the company’s chief executive, attributed the job cuts primarily to evolving customer behavior rather than AI expansion. He noted that over 90% of customers currently use digital channels as their initial point of contact, and the company has experienced a 20% decline in customer phone calls. O’Shea stated that the company plans to expand employment in digital interface roles while reducing positions focused on telephone support.
Trade unions have previously raised concerns that Centrica’s artificial intelligence investments would displace hundreds of workers by automating customer service functions. However, company leadership maintains the reductions reflect market demand patterns rather than technology-driven automation decisions.
The announcement coincided with Centrica’s financial reporting for the first half of the year. Despite losing 50,000 domestic customers during the period—with British Gas customer numbers falling to 7.45 million from 7.5 million—the retail division’s profits increased to £346m from £338m in the corresponding prior-year period. O’Shea attributed this performance to the company’s focus on generating higher profit margins from fixed-price tariffs rather than pursuing lower-margin business. Additionally, British Gas faces upcoming compensation payments of up to £112m to customers who had prepayment meters installed during the energy crisis period.
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