Centrica reported lower half-year earnings as it confirmed around 1,300 roles are being eliminated across the business
British Gas owner Centrica has confirmed around 1,300 jobs are being cut as it reported lower half-year earnings.
The reduction represents around 14 per cent of the customer operations workforce.
It includes the 500 call centre roles across Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds that Centrica announced last month as part of its "Customer Service Transformation" programme.
The GMB union has claimed those 500 roles are effectively being replaced by artificial intelligence, an allegation the company has rejected.
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.”
The company said average customer contact per account has fallen 20 per cent year on year, with around nine in 10 customer interactions now taking place through digital self-service channels including its website, app, chatbot and WhatsApp.
A Centrica spokesman said last month: "The suggestion these roles are being replaced by AI or new chatbot technology is simply wrong."
The company said the changes instead reflect shifting customer behaviour, with inbound contact volumes falling by around 31 per cent since 2023.
It added that customers who still need to speak to an adviser, particularly vulnerable people, would continue to receive support.
Charlotte Brumpton-Childs, GMB national secretary, said: "It's an absolute disgrace British Gas is slashing hundreds of human jobs and giving them to chatbots.
"These staff are massively overworked and underpaid, yet do their level best to keep customers happy. Now, instead of being rewarded, they're being replaced by artificial intelligence."
The union has challenged the company's assertion that demand for call centre support has fallen, saying its members continue to face heavy workloads.
The announcement follows the publishing of Centrica's half year earnings, as the energy group said adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) fell to £737million from £900million.
Adjusted earnings per share slipped to 6.8p from 7.0p for the six months to June 30.
Despite the weaker performance, Centrica increased its interim dividend by nine per cent to 2.0p per share from 1.83p.
Chief executive Chris O'Shea described the results as "solid", adding that the company's "operational foundations are strong" while acknowledging that "some of our delivery has been slower than we would like".
