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‘Customers prefer AI chatbots to humans’ says British Gas boss as 1,300 call centre staff axed
Centrica, the owner of British Gas, plans to reduce its call-centre workforce by 1,300 roles over two years, with 800 additional cuts following 500 announced previously. Chief executive Chris O’Shea said the reductions reflect customers’ growing use of digital services rather than AI directly replacing staff, arguing that many customers prefer chatbots and online channels. The move is significant because it illustrates how major utilities are reshaping customer service operations around digital tools while reducing traditional jobs.
O’Shea said more than 90% of customers now initially use digital channels and customer calls have fallen by 20%; roles in six UK cities are expected to fall by 14%, through unfilled vacancies and redundancies. Centrica’s retail profits rose from £338m to £346m in the first half of the year despite British Gas’s domestic customer base falling from 7.5 million to 7.45 million. The company attributed this to higher margins on fixed-price tariffs, while it also faces up to £112m in compensation over the forced installation of prepayment meters.
In short
- British Gas owner plans 1,300 call-centre job cuts.
- Centrica says changing customer habits drive the reductions.
- Retail profits rose despite a fall in customers.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Customers are demonstrably shifting to digital channels, with 90% initially using them and call volumes down 20%, indicating genuine preference for the convenience, speed and 24/7 availability of online services and chatbots. Companies that respond efficiently to customer behaviour and invest appropriately in preferred channels serve their customers better whilst operating profitably, allowing further investment and more effective resource allocation.
The case against
Conflating the availability of digital options with genuine customer preference obscures that many customers use these channels reluctantly for lack of better alternatives, whilst complex issues still require human expertise and empathy. Job cuts of this scale cause real hardship to workers and communities, and a utility company delivering essential services arguably has obligations beyond maximising efficiency—to maintain employment standards and ensure vulnerable customers aren't excluded from adequate human support.
Explained simply
Centrica operates British Gas, one of Britain's largest energy suppliers, providing gas and electricity to millions of households. The company employs thousands of people in call centres across the UK to handle customer enquiries and complaints.
Customer behaviour has shifted significantly towards digital services in recent years, with more people now using online tools and automated systems rather than phoning call centres. Centrica has observed that the number of calls it receives has fallen considerably as customers increasingly opt for self-service digital options.
This reflects a wider transformation occurring across major British businesses as they reorganise operations around digital technology and automation. The changes highlight emerging questions about the future of traditional customer service employment and how major companies adapt to evolving customer preferences.
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