Centrica, the parent company of British Gas, has defended its decision to reduce approximately 1,300 customer service roles, arguing that the overwhelming majority of customers now prefer interacting with digital services and AI-powered chatbots instead of speaking directly with call centre staff. The announcement comes as the FTSE 100 energy group continues a broad transformation of its customer service operations, placing greater emphasis on artificial intelligence and digital engagement.
The company confirmed that around 800 additional positions will be removed as part of what it describes as a targeted deployment of AI technologies, following an earlier announcement of 500 job reductions made only weeks ago. Combined, the measures represent one of the most significant restructurings of British Gas’s customer support network in recent years.
Job Reductions To Be Implemented Over Two Years
According to Centrica, the workforce reduction will be introduced gradually over the next two years. Customer service teams based in Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds will be affected, with staffing levels expected to decline by approximately 14%.
Rather than relying solely on compulsory redundancies, the company intends to achieve part of the reduction by leaving vacancies unfilled as employees resign or retire. Nevertheless, a number of redundancies are expected to form part of the overall restructuring programme.
The strategy reflects Centrica’s long-term objective of reshaping its operational model to align with changing patterns of customer engagement. As more consumers embrace online self-service platforms and AI-assisted support, the company argues that maintaining the same level of telephone-based staffing is no longer commercially justified.
Chief Executive Attributes Changes To Customer Behaviour
Chris O’Shea, Chief Executive of Centrica, rejected suggestions that artificial intelligence alone is responsible for the planned job losses. Instead, he maintained that the restructuring is primarily a response to changing customer preferences and the increasing popularity of digital communication channels.
Speaking about the company’s strategy, O’Shea stated that more than 90% of customers now begin their enquiries through digital platforms rather than traditional telephone services. He also revealed that customer call volumes have fallen by approximately 20%, reinforcing the company’s belief that demand for conventional call centre support is steadily diminishing.
According to O’Shea, the decline in telephone enquiries means Centrica must adapt its workforce to reflect the evolving expectations of consumers. While acknowledging that fewer employees may be required to handle calls, he suggested the business expects to create additional employment opportunities focused on digital services, online customer experiences and technology-led support functions.
Trade Unions Raise Concerns Over AI Replacing Human Roles
Despite Centrica’s explanation, trade unions have previously voiced strong concerns regarding the company’s growing investment in artificial intelligence. Union representatives argue that the expansion of AI-powered customer service tools risks replacing skilled employees with automated systems, potentially resulting in the loss of hundreds of human jobs.
Critics contend that although businesses increasingly present AI as a tool to improve efficiency, many organisations ultimately deploy the technology to reduce staffing costs and streamline operations. They warn that the continued replacement of frontline customer service employees could negatively affect both employment prospects and the quality of customer interactions, particularly for vulnerable consumers who may require personalised assistance.
The latest announcement is therefore likely to intensify debate surrounding the wider impact of artificial intelligence on employment across the UK economy.
Retail Profits Increase Despite Falling Customer Numbers
Centrica’s announcement coincided with the publication of its half-year financial results, which showed improved profitability across its retail division despite a continued decline in the number of domestic British Gas customers.
The retail business, encompassing British Gas, boiler servicing, home maintenance products and smart energy solutions, generated profits of £346 million during the first six months of the year. This represents an increase from £338 million recorded during the corresponding period last year.
While customer numbers fell from 7.5 million at the end of the previous year to approximately 7.45 million, the company reported stronger financial performance by prioritising profitability over market share.
O’Shea explained that Centrica has deliberately focused on offering fixed-price tariffs capable of delivering stronger margins, rather than pursuing additional customers through less profitable pricing strategies. The approach reflects a broader emphasis on sustainable earnings instead of aggressive expansion within the highly competitive UK energy market.
British Gas Continues To Face Regulatory And Reputational Challenges
The financial update also arrives as British Gas continues to deal with the consequences of the prepayment meter controversy that attracted widespread public criticism during the height of the energy crisis triggered by Russia’s invasion of Ukraine.
The supplier is expected to pay as much as £112 million in compensation to thousands of customers after prepayment meters were force-fitted into homes. The settlement is widely regarded as the largest compensation package of its kind involving a UK energy supplier and represents a significant chapter in the company’s recent history.
Although Centrica has returned to stronger profitability, the incident remains a reputational challenge, with consumer groups continuing to scrutinise the company’s treatment of vulnerable households.
AI Expected To Play An Increasing Role In Customer Service
The latest restructuring highlights a broader trend across the UK’s corporate landscape, where artificial intelligence is becoming increasingly central to customer service operations. Businesses in multiple sectors are investing heavily in AI-driven chatbots, automated assistants and digital self-service platforms to improve efficiency, reduce waiting times and lower operating costs.
For Centrica, executives argue that the transition reflects changing consumer expectations rather than technology replacing employees outright. Nevertheless, the reduction of 1,300 call centre roles illustrates the profound impact digital transformation is having on traditional customer service employment.
As AI capabilities continue to advance, companies across Britain are expected to reassess their staffing models, balancing operational efficiency with the need to maintain high-quality customer support. The debate over whether artificial intelligence enhances customer experience or accelerates workforce displacement is therefore likely to remain a prominent issue for both businesses and policymakers in the years ahead.
