BRITISH GAS CUTS 1,300 JOBS, PIVOTS TO AI CHATBOTS

Centrica plans to cut 800 jobs through what it calls "targeted deployment of AI tools," following an earlier announcement of 500 redundancies. The FTSE 100-listed energy supplier is accelerating its shift toward automated customer service as it reports rising retail profits from a focus on larger margins. CEO Chris O'Shea has defended the strategy by asserting that most households would rather interact with AI chatbots than speak with company representatives. The claim underpins Centrica's investment in automation technology across its customer service operations. The cuts represent a significant restructuring of British Gas's workforce as the company modernizes its operations. The energy sector has increasingly adopted AI and automation to reduce operational costs, though such moves typically face scrutiny from unions and consumer advocates concerned about service quality and job losses. Centrica's financial results show the strategy is yielding higher profits in its retail division, suggesting the company sees efficiency gains as justified by its business model. The deployment of chatbots addresses rising customer service costs while the company pursues improved margins. The timing coincides with broader industry trends toward automation in customer-facing roles. Energy suppliers across the UK have similarly invested in digital platforms and AI systems to handle routine inquiries, billing questions, and account management. Workers affected by the cuts will face redundancy processes, though Centrica has not detailed transition support or redeployment options. The cuts extend across multiple phases, indicating a planned, phased approach rather than immediate mass layoffs. The move highlights tensions between corporate efficiency objectives and employment concerns, particularly in sectors where automation can handle high volumes of standardized customer interactions. Whether customers genuinely prefer chatbot interactions or simply accept them remains distinct from Centrica's assertion—a distinction the company has not addressed in detail.