Centrica bets on AI efficiency, while unions warn hundreds of human jobs could be replaced by chatbots #
Centrica is cutting 1,300 jobs across the business as it expands its digital transformation and AI tools, reigniting fresh concerns over the automation's impact on jobs. The company said the reductions form part of a broader technology-led transformation supported by the targeted deployment of AI tools.
The reductions will take place over two years and affect around 14% of the impacted workforce, through both staff departures and redundancies. Unions have criticised the move, warning AI could replace 'hundreds of human jobs' with chatbots. However, Centrica chief executive Chris O'Shea said that AI wasn't the main cause of the cuts. Instead, he said that changing customer behaviour was the bigger factor behind the restructuring.
Centrica Blames Shift to Digital Services #
O'Shea defended the cuts, arguing that British Gas customers are moving away from phone calls and are instead embracing digital support. As a result, demand for phone-based customer service has declined.
'AI isn't driving these particular job reductions; that's mainly due to changing customer behaviour,' he said. According to the company, 90% of customers are now using digital channels as their first point of contact. Meanwhile, customer calls have fallen by 20% year over year.
With customers contacting the company less frequently, Centrica said it no longer needs the same level of phone-based support staff. O'Shea said Centrica plans to increase digital service roles while scaling back phone-based positions. 'We expect to grow more jobs around our digital interface, and maybe having fewer people on the phones,' he said.
Profits Climb Despite Fewer Customers #
The announcement came as Centrica reported higher profits from its retail business, including British Gas, boiler care services, and smart energy products. The retail division reported profits of £346M for the first half of the year, up from £338M a year earlier.
O'Shea said the company prioritised value instead of volume, focusing on higher-margin fixed-price tariffs. 'We're not chasing loss-making business,' he said. Despite stronger retail performance, Centrica's overall adjusted operating profit fell 9.5% to £497M from £549M a year earlier, reflecting weaker performance elsewhere in the business.
Critics Warn the Human Element Is Being Lost #
The move has drawn criticism from campaigners and consumer groups, warning that reliance on AI could leave some customers struggling to access help. Dennis Reed of Silver Voices warns that replacing staff with chatbots could weaken the quality of support provided. 'Talking to a machine is not good customer service, and these job cuts will be counter-productive for shareholders,' he said.
Caroline Abrahams of Age UK also warned that many older customers could find increasingly digital customer service more difficult to navigate. She points out that a 'significant minority of older people aren't online at all.'
Centrica Defends AI-Led Overhaul #
Centrica said the changes are intended to improve efficiency and respond to shifting customer preferences, rather than replace employees with AI. 'The company has been transforming for years to improve efficiency and deliver the service customers demand, while investing where demand is growing — including recruiting more engineers and hiring 500 apprentices this year,' a spokesperson said.
The company also rejected union claims that AI tools are replacing workers directly. Even so, the announcement has renewed debate over how companies can expand AI and digital services without reducing the need for human workers.
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