Centrica, the owner of British Gas, is cutting 1,300 jobs from its call centre operations as part of a wider push toward AI-driven customer service. The reductions include 800 newly announced cuts tied to expanded use of AI tools, on top of 500 job losses confirmed the previous month. Chief executive Chris O’Shea defended the move, arguing that most households now prefer interacting with AI chatbots over speaking to human staff.
Why is Centrica cutting call centre jobs?
Centrica says the cuts stem from a strategic shift toward automation, with AI tools increasingly handling routine customer queries that were previously managed by call centre staff. The company frames this as a response to changing customer behaviour rather than a straightforward cost-cutting exercise, though the timing coincides with Centrica reporting a rise in retail profits after sharpening its focus on higher margins.
Chris O’Shea said most customers now prefer dealing with an AI chatbot rather than speaking to a person.
What does this mean for British Gas customers?
Customers contacting British Gas are likely to encounter AI-powered chatbots more frequently as the company scales back human-staffed call centres. Centrica maintains that this reflects genuine customer preference for faster, automated interactions, though the announcement is likely to raise concerns among consumer groups and unions about service quality and job security for remaining staff.
How does this fit into Centrica’s broader financial strategy?
The job cuts arrive alongside improved retail profits at Centrica, which the company attributes to a deliberate focus on wider margins across its supply business. The combination of rising profitability and AI-driven job reductions is likely to intensify scrutiny over whether automation is being used primarily to improve customer experience or to boost the bottom line at a major energy supplier already under public pressure over pricing and service.
