Centrica is cutting around 1,300 jobs as the British Gas owner accelerates a sweeping overhaul of its operations, underscoring how digital technology is reshaping one of the UK’s largest consumer-facing energy businesses despite mounting political and union scrutiny over the future of white-collar work.
The energy group said the reductions, equivalent to around 14 per cent of its customer operations workforce, form part of a broader restructuring aimed at improving efficiency and adapting to rapidly changing customer behaviour.
The announcement came alongside weaker half-year earnings, with adjusted EBITDA falling to £737 million from £900 million a year earlier, although the company increased its interim dividend by 9 per cent.
Around 500 of the cuts affect customer service roles across Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds, with a further 800 positions being removed from support functions.
The restructuring has reignited debate over artificial intelligence and automation after the GMB union claimed the call centre roles were effectively being replaced by AI-powered systems.
Centrica strongly rejected that characterisation, insisting the reductions reflect a structural decline in customer demand for telephone support rather than technological substitution.
According to the company, customer contact volumes have fallen sharply as households increasingly use digital channels. Average customer interactions per account are down by a fifth over the past year, while almost nine in ten enquiries are now handled through self-service platforms including its website, mobile app, chatbot and WhatsApp.
Chief executive Chris O’Shea described the results as “solid”, arguing the business was continuing to invest where demand remains strongest, including recruiting additional field engineers and hiring 500 apprentices this year.
For investors, the restructuring illustrates a broader trend sweeping corporate Britain. Companies are racing to reduce costs while responding to changing consumer habits, even as concerns grow over the impact of automation on employment. The dispute between Centrica and the GMB highlights how the debate over AI is shifting from theoretical risk to practical consequences, with the future shape of customer service increasingly becoming a battleground between productivity gains and workforce protection.
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