Centrica to cut 1,300 call-centre jobs as AI rollout expands

Centrica, the FTSE 100 owner of British Gas, is set to cut 1,300 call-centre jobs as it pushes further into AI-powered customer service and a higher-margin business model. The company’s chief executive, Chris O’Shea, has argued that most households would rather deal with a chatbot than a human agent, a claim that sits at the centre of a wider shift in how utilities are handling customer contact. The cuts come in two parts: 800 roles linked to what Centrica has described as the targeted deployment of AI tools, adding to the 500 job losses the group confirmed last month. The scale of the reduction points to a broader restructuring effort rather than a short-term adjustment, with the company leaning on automation to reduce costs and reshape how it handles routine enquiries. For customers, the change is likely to be felt first in the way simple issues are managed. Chatbots are increasingly being used to answer common questions, direct users to online account tools, and handle basic service requests. Companies argue that this can speed up response times and free up human staff for more complex problems. Critics, however, often say the technology can make it harder to reach a person when a case is urgent or unusual. Centrica’s move also comes as it reports higher retail profits, reinforcing the impression that the company is focusing on areas where margins are bigger. That balance — between profitability, efficiency and customer service — is becoming a defining issue for large utilities, especially as they try to cut operating costs without triggering backlash from consumers or employees. The timing will be closely watched by workers and unions, particularly because call-centre roles are often among the most vulnerable to automation. These jobs have traditionally provided large numbers of relatively accessible positions, and further reductions could deepen concerns about what kinds of work are being replaced as companies roll out AI tools more aggressively. What remains unclear from Centrica’s announcement is how the changes will affect service quality, whether all of the affected roles are UK-based, and how quickly the new systems will be introduced across the business. It is also not yet clear how the company expects customers who prefer speaking to staff to be handled as the AI rollout expands. The company’s comments will likely add to an already live debate about the promise and limits of AI in everyday services. Supporters say it can improve efficiency and make customer support available around the clock. Skeptics say the real-world experience can be less smooth, especially when people need to explain billing problems, account disputes or faults that automated systems may struggle to interpret. For now, the message from Centrica is clear: the company sees AI as a central part of its future operations, and the job cuts in its call centres are the latest sign of how quickly that transition is being made.

Source: The Guardian Business - https://www.theguardian.com/business/2026/jul/23/customers-prefer-ai-chatbots-says-chris-oshea-british-gas-centrica-boss