British Gas is cutting 1,300 customer service roles as more customers turn to AI chatbots, owner Centrica has announced. The cuts represent a 14% reduction in the workforce.
Customer behaviour driving change
Centrica CEO Chris O'Shea said customer behaviour is driving the shift. He stated: “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 about a fifth since last year.
The overhaul includes the “targeted deployment of AI tools” to simplify operations. O'Shea expects growth in digital roles and fewer staff on the phones.
Financial results and challenges
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 fell on the news.
Criticism from campaigners
Campaigners criticised the move. Silver Voices director Dennis Reed warned that chatbots could leave vulnerable customers struggling. He 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 stressed the ongoing need for human contact.
Centrica's response
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.
Locations and union reaction
The job losses affect call centre teams in Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds. GMB union representatives expressed anger, arguing dedicated staff were being sidelined despite their efforts.
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.
