Centrica, the FTSE 100 parent company of British Gas, has announced plans to eliminate 1,300 positions from its call centre operations across multiple locations in the United Kingdom. The reduction consists of 800 newly announced job cuts alongside 500 cuts confirmed in the previous month. These reductions are expected to occur over a two-year period, with some positions remaining vacant through natural attrition while others will result from formal redundancies. The affected call centres are located in Glasgow, Edinburgh, Cardiff, Leicester, Stockport, and Leeds, representing a 14% reduction in customer service teams at those sites.
Centrica’s chief executive attributed the job reductions primarily to shifts in customer behavior rather than automation-driven displacement. He stated that more than 90% of customers currently utilize digital channels as their first point of contact, and the company has experienced a 20% decline in incoming customer calls. The executive suggested that while certain roles would be eliminated, the company anticipated job growth in areas related to digital interfaces and customer interactions through online platforms.
Trade unions have previously expressed concerns that artificial intelligence investments would result in significant employment losses as human roles are transferred to automated systems. The company’s statement emphasizes that changing customer preferences, rather than technological deployment alone, are driving the staffing adjustments.
The job reduction announcement coincided with Centrica’s reporting of increased retail division profits, which reached £346 million during the first half of the year compared to £338 million in the equivalent period previously. This profit growth occurred despite a decline in British Gas domestic customer numbers, which fell to 7.45 million from 7.5 million at the prior year-end. The company’s strategy has focused on achieving higher profit margins from fixed-price energy tariffs rather than pursuing additional customer acquisition at reduced profitability levels.
British Gas faces ongoing customer attrition to competing suppliers and remains subject to a substantial compensation settlement. The company is expected to pay up to £112 million to resolve claims related to prepayment meters that were force-fitted during the energy supply crisis.
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