British Gas axes 1,300 call centre staff – because customers ‘prefer chatbots’ | World | News

British Gas customers are increasingly ditching phones for AI chatbots, prompting owner Centrica to axe 1,300 customer service roles in a major automation drive. The cuts will slash the workforce by 14%.

Centrica CEO Chris O’Shea suggested customer behaviour is driving the change. Mr O’Shea said: “Over 90% of our customers actually use digital channels in the first instance, and we’ve seen a 20% reduction in customer calls.” Average contacts per customer have fallen by around a fifth since last year. The overhaul includes the “targeted deployment of AI tools” to simplify operations. Mr O’Shea expects growth in digital roles and fewer staff on the phones.

The announcement came as Centrica reported adjusted operating profits down 9.5% to £497m in the first half of the year. Energy market volatility, including disruptions from the Iran war that pushed European gas prices to three-year highs, has created challenges. Shares tumbled on the news.

Campaigners slammed the move. Silver Voices director Dennis Reed warned that chatbots could leave vulnerable customers struggling.

Mr Reed told The Telegraph: “Talking to a machine is not good customer service and these job cuts will be counter-productive for shareholders.” Age UK’s Caroline Abrahams highlighted that a “significant minority of older people aren’t online at all” and Ms Abrahams stressed the ongoing need for human contact.

Centrica insists the changes reflect what customers want. A spokesman said: “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.” The firm rejected union claims that the roles are being directly replaced by AI.

The job losses hit call centre teams in locations including Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds. GMB union representatives expressed anger, arguing dedicated staff were being sidelined despite their efforts.

Mr O’Shea acknowledged slower delivery in some areas amid market turbulence but emphasised disciplined investment for long-term growth. The news coincides with the extension of two ageing nuclear plants — Hartlepool and Heysham 1, in which Centrica holds a 20% stake — until 2030 to help secure Britain’s energy supply.

For millions of British Gas households, the shift marks a clear move from human voices to digital interfaces. Centrica is betting that faster, always-available chatbots will satisfy most users while freeing resources for other priorities. Critics fear it risks alienating those who need a real person on the line — especially in a cost-of-living crisis where energy queries often carry high stakes.

Whether the AI gamble delivers better service or breeds frustration remains to be seen. One thing seems certain: the era of the traditional call centre at British Gas is rapidly fading.