- Centrica has announced a total of 1,300 job cuts at British Gas, with 800 roles cut recently on top of 500 announced last month.
- CEO Chris O'Shea stated that customers prefer AI chatbots to human interactions, emphasizing that AI is not driving the job reductions.
- Campaign groups such as Silver Voices and Age UK have raised concerns about the impact of these cuts on vulnerable customers.
- Centrica reported a drop in first-half profits, with adjusted operating profits falling 9.5% to £497 million.
- Centrica is implementing a technology-led transformation programme aimed at reducing operating costs and simplifying customer service operations.
- Over 90% of Centrica's customers now use digital channels for their inquiries, leading to a 20% reduction in customer calls.
Centrica is set to cut 1,300 call center jobs at British Gas as part of a technology-led transformation aimed at reducing operating costs. CEO Chris O'Shea emphasized that the decision reflects a significant shift in customer behavior, with over 90% of customers now preferring digital channels over human interaction.12456
The job cuts include 800 roles announced recently, in addition to 500 cuts disclosed last month, representing a 14% reduction in the customer service workforce. O'Shea stated, “AI isn’t driving these particular job reductions; that’s mainly due to changing customer behaviour.” He noted a 20% decrease in customer calls, indicating a growing reliance on AI chatbots for service inquiries.
Centrica's restructuring comes amid a backdrop of declining profits, with adjusted earnings falling to £737 million from £900 million in the same period last year. Despite this, retail profits rose to £346 million, suggesting a complex financial landscape.
Critics, including Silver Voices and Age UK, have raised concerns about the impact of these changes on vulnerable customers, arguing that reliance on AI could hinder service quality. “Talking to a machine is not good customer service,” said Dennis Reed, director of Silver Voices, highlighting the need for human interaction in customer service.3
The job reductions are expected to unfold over the next two years, with some roles left unfilled due to resignations, while others will result from redundancies.
“The cuts include 800 roles announced Thursday, on top of 500 last month, as Centrica shares fell 10.2% to 161½p. Campaign group Silver Voices warned AI chatbots may harm vulnerable customers, while Age UK noted a significant minority of older people are not online, as CEO Chris O'Shea insisted AI isn't driving the reductions.”
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