British Gas owner Centrica has announced plans to cut approximately 1,300 jobs over two years, including 800 new reductions on top of 500 previously announced last month. The cuts are part of an overhaul of its customer services and support teams.
The energy supplier said the reductions are already under way and will take place over two years. Proposals include reducing around 500 contact-based jobs in its customer operations team, alongside additional cuts to offshore outsource support roles.
Workforce reduction and efficiency measures
This will lead to an approximately 14% reduction in the company’s customer operations workforce. Additionally, Centrica is proposing to reduce roles within its group support functions to make them more efficient. Some cuts involve natural attrition, where a person’s job is not replaced when they leave or retire.
The overhaul is a response to structural changes in customer behaviour. According to Centrica, average customer calls have fallen by 20% year-on-year, and around 90% of customers now use digital methods of support.
CEO comments on job cuts
Chief executive Chris O’Shea said: “We’re creating an awful lot of jobs, we are growing, but we’ve got to reflect the changes in customer behaviour and we’ve got to give customers what they want. It’s a sensitive time when people are leaving your organisation but we’re working with our trade unions and we’re working with our colleagues in order to do this in the best way possible.”
A spokesman for Centrica said: “We have been transforming the business for a number of years to ensure we have the right roles in the right places for the future. This means making changes to improve efficiency, drive commercial performance and give our customers the service they want. At the same time, we continue to invest in the skills where there is demand, including recruiting more engineers to meet growing demand and hiring 500 apprentices this year alone.”
Energy bills and VAT
O’Shea welcomed Andy Burnham’s decision to cut VAT from energy bills from October 1, which is set to save the typical household £45 a year. However, he added: “Would I rather we had more targeted support? I would, and I suspect the Prime Minister would rather more targeted support as well. But that will take some time. So I think we should applaud the move to remove VAT from energy bills, but we should also give them a bit of time.”
Centrica and fellow energy supplier E.On have called for targeted help for those most in need, rather than blanket support on energy bills. The energy price cap is currently forecast to rise by 2% in October, largely driven by increased unrest in the Middle East pushing wholesale prices up, to £1,906 a year, according to analysts Cornwall Insight.
