‘Customers prefer AI chatbots,’ says British Gas owner as 1,300 call centre jobs axed
The owner of British Gas has claimed that most households would rather speak with an AI chatbot than deal with the company’s staff as it prepares to cut 1,300 jobs from its call centres. Centrica, the supplier’s FTSE 100 owner, plans to cut 800 jobs as the company carries out a “targeted deployment of AI tools”, on top of the 500 cuts it confirmed last month. The plan to reduce the supplier’s customer service teams in Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds by 14% is expected to take place ov…

On 23 July 2026, The Guardian reported that Centrica, owner of British Gas, will cut 1,300 call centre jobs, including 800 new cuts linked to a 'targeted deployment of AI tools' across six UK cities over two years. CEO Chris O'Shea said over 90% of customers now use digital channels first and calls have fallen 20%, while unions warned hundreds of human jobs would go to chatbots.
The case matters because it links AI customer-service automation directly to large-scale displacement of frontline workers, even as retail profits rise. What remains uncertain is whether AI is the primary cause, as O'Shea attributes the cuts mainly to changing customer behaviour and says the firm expects to grow jobs around its digital interface.
- Centrica plans to cut 800 additional call centre jobs through 'targeted deployment of AI tools', on top of 500 cuts confirmed last month, totaling 1,300 roles.
- Reductions represent 14% of customer service teams in Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds over two years via unfilled resignations and redundancies.
- CEO Chris O'Shea said over 90% of customers use digital channels first and calls fell 20%, while unions said investment would give 'hundreds of human jobs' to chatbots.
- Retail division profits rose to 346m in first half from 338m a year earlier even as domestic customers fell to 7.45 million.
Centrica will eliminate 1,300 British Gas call centre jobs across six UK cities as it carries out targeted deployment of AI tools and chatbots.
The rundown
Centrica said the 14% reduction across Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds will occur over two years, with some posts left vacant after resignations and the remainder through redundancies, following 500 cuts confirmed last month.
The company reported retail profits of 346m in the first six months, up from 338m a year earlier, while British Gas domestic customers fell to 7.45 million from 7.5 million, and it faces up to 112m in compensation for force-fitted prepayment meters.
Sources
- JournalismThe Guardian2026-07-23
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