Centrica's FTSE 100 listing is set to take a hit after the British Gas owner announced plans to cut 1,300 jobs from its call centres, as it shifts towards digital interactions and AI tools. This move is expected to reduce costs by £80 million per annum, with 800 roles impacted by the deployment of targeted AI solutions, in addition to 500 cuts made last month.
According to Centrica's chief executive Chris O'Shea, the decision reflects a fundamental change in customer behaviour, with over 90% now using digital channels as their primary point of contact. This shift has led to a 20% reduction in customer calls, and O'Shea claims that while call centre jobs may decrease, new roles will be created around the company's digital interface.
Notably, this announcement coincides with Centrica reporting a £8 million increase in retail profits for the first half of 2026, despite a slight decline in British Gas's domestic customer base to 7.45 million from 7.5 million at the end of last year. Profits from Centrica's retail division, which encompasses boiler care and smart energy products, rose to £346 million in the first six months of 2026, up from £338 million in the same period last year.
O'Shea attributes this uplift to the company's strategy of focusing on achieving larger profit margins from fixed-price tariffs, rather than pursuing what he describes as "loss-making business." This pivot aims to enhance profitability per customer, even if overall customer numbers decline. The move has sparked concerns among trade unions and reflects a broader industry trend towards automation, with potential implications for employment in customer service sectors.
For households, this shift could mean a more streamlined experience when interacting with their energy provider, although critics argue that the loss of human interaction may have unforeseen consequences on customer satisfaction and loyalty. As the sector continues to evolve, one thing is clear: Centrica's decision will be closely watched by investors and industry experts alike.