Centrica to Cut 1,300 Jobs Amid Shift to AI and Digital Services
Centrica, the owner of British Gas, has announced plans to reduce its workforce by approximately 1,300 roles, primarily in call centres, as it increases its reliance on digital and
By The Guardian
Centrica, the parent company of British Gas, has confirmed it will eliminate around 1,300 jobs as part of a strategy to enhance its digital services and integrate artificial intelligence into customer operations. Chief executive Chris O’Shea stated that over 90% of customers now prefer to use digital channels for their inquiries.
The job cuts will impact customer service teams in various locations, including Glasgow, Edinburgh, Cardiff, Leicester, Stockport, and Leeds, and are expected to occur over the next two years. This follows the announcement of 500 job reductions last month, with an additional 800 roles now set to be cut.
O’Shea noted that the company has experienced a 20% decrease in customer calls, indicating a shift in customer behaviour towards digital communication. He emphasized that the job reductions are primarily a response to this change rather than a direct result of AI implementation.
Centrica's recent financial report revealed a decline in profits, with the retail division's earnings falling by 18% in the first half of the year, despite an increase in retail profits to £346 million from £338 million in the same period last year. The number of British Gas domestic customers has also decreased to 7.45 million, down from 7.5 million at the end of the previous year. O’Shea attributed this decline to a focus on improving profit margins rather than pursuing unprofitable customer accounts.
As part of its restructuring, Centrica is expected to pay out up to £112 million in compensation to customers affected by the forced installation of prepayment meters during the gas crisis, marking one of the largest settlements in the energy sector's history.