Key facts
- Centrica plans to cut 1,300 jobs from its British Gas call centers.
- The company attributes the job cuts to customers preferring AI chatbots and digital channels.
- 800 of the planned job cuts are linked to the deployment of AI tools.
- Centrica's retail profits rose to £346m in the first half of the year.
- British Gas will pay up to £112m in compensation for issues with force-fitted prepayment meters.
Centrica, the parent company of British Gas, has announced plans to eliminate 1,300 jobs across its call centers, attributing the decision to a significant shift in customer behavior towards digital channels and AI-powered interactions. The company stated that over 90% of customers now initiate contact through digital means, leading to a 20% decrease in call volumes. This move is part of a broader strategy to integrate AI tools and adapt to evolving customer preferences, with some roles being left unfilled and others through redundancies.
Despite a reduction in its customer base to 7.45 million, Centrica reported an increase in retail profits for the first half of the year, reaching £346 million, up from £338 million in the same period last year. Chief Executive Chris O’Shea emphasized that the job reductions are primarily driven by changing customer habits rather than solely by AI implementation, noting an expectation to grow jobs related to digital interfaces. The company also faces a significant settlement, potentially up to £112 million, to compensate thousands of customers affected by the forced fitting of prepayment meters.