Key facts
- AO World is replacing up to 200 UK call centre roles with hires in South Africa.
- The company cited rising labor costs and inflationary pressures as reasons for the shift.
- The move is expected to save approximately £4 million annually.
- Pre-tax profits for AO World jumped 145% to £50.5 million in the year to March 31.
- About 150 roles have already been moved, with an additional 50 expected to follow.
- Over 100 roles handling complex customer queries will remain in the UK.
Online electrical goods retailer AO World is shifting the majority of its UK call centre jobs to South Africa, a move it expects to save approximately £4 million annually. The company cited ongoing inflationary cost pressures, particularly rising employment costs, as the primary driver for this decision. This announcement coincides with AO World reporting a 145% increase in pre-tax profits to £50.5 million for the year ending March 31, alongside a special £20 million payment to shareholders. Approximately 150 roles have already been transferred to South Africa over the past 12 to 18 months, with an additional 50 expected to follow. However, over 100 roles handling more complex customer queries will remain in the UK. The company's overall employee numbers decreased by 340 to 2,800 during the year as part of broader efficiency measures. AO World is also exploring increased automation in its warehousing operations, noting that changes in national insurance and the national minimum wage have significantly impacted operating costs.