British Gas Owner Centrica Cuts 1,300 Call Center Jobs, Citing Customer Preference for Digital Channels

Job Reductions at Centrica

Centrica, the parent company of British Gas, plans to eliminate 1,300 call center positions. This includes 800 jobs attributed to the deployment of AI tools and an additional 500 cuts announced last month. The reductions will affect customer service teams across multiple UK locations, including Glasgow, Edinburgh, Cardiff, Leicester, Stockport, and Leeds.

Shift to Digital Customer Service

Centrica's chief executive, Chris O’Shea, stated that the job cuts are primarily a response to changing customer behavior, not solely driven by AI. He noted that over 90% of customers initially use digital channels, leading to a 20% decrease in customer calls. The company expects to create more jobs in digital interface development while reducing phone support staff.

Financial Performance and Customer Trends

The job reduction plans coincide with Centrica reporting increased retail profits in the first half of the year. Retail division profits, which include British Gas and other services, rose to £346 million from £338 million in the same period last year. This occurred despite a decline in British Gas domestic customer numbers, which fell from 7.5 million to 7.45 million. The company has focused on higher profit margins from fixed-price tariffs rather than customer acquisition.

Background and Context

Trade unions have previously expressed concerns that Centrica's investment in artificial intelligence would lead to job displacement. British Gas has also faced scrutiny, with an expected payout of up to £112 million in compensation to customers affected by force-fitted prepayment meters during the Russian gas crisis.