Centrica, the parent company of British Gas, is eliminating 1,300 call centre positions as artificial intelligence systems take over customer support tasks. The job cuts, confirmed by the company, signal a broader automation wave sweeping through the utility and service industries. The move has already drawn regulatory scrutiny over the balance between efficiency gains and the societal impact of large-scale job displacement.
The scale of the cuts
Centrica employs roughly 20,000 people in the UK. The 1,300 roles being cut represent about 6.5% of its workforce. Most of the affected positions are in call centres that handle customer inquiries, billing issues, and technical support. The company said it will try to redeploy some workers to other roles, but the net reduction is significant.
The cuts come as Centrica invests heavily in AI-powered chatbots and automated systems designed to handle routine customer interactions. The company has been testing these systems for months and says they can resolve many common issues faster and more accurately than human agents.
Why AI is taking over
Centrica is not alone. Across the UK and globally, companies in banking, telecoms, and utilities are replacing call centre staff with AI. The technology has improved rapidly in recent years, moving from simple scripted responses to natural language processing that can understand and respond to complex queries. For Centrica, the shift is partly about cost: call centres are expensive to staff and train. But the company also argues that AI can provide 24/7 service without the delays and inconsistencies of human shifts.
The job cuts are part of a broader trend. A 2023 report from the Institute for Public Policy Research estimated that up to 8 million UK jobs could be automated by 2030, with customer service roles among the most vulnerable. Centrica's decision is one of the largest single automation-driven layoffs in the sector so far.
Regulatory and societal questions
The announcement has prompted questions from regulators and lawmakers about the social cost of automation. The UK's Competition and Markets Authority and the Department for Business, Energy and Industrial Strategy are both said to be monitoring the situation. Unions have called for a moratorium on AI-driven job cuts until the government sets clear rules on retraining and support for displaced workers.
Centrica has not commented on specific regulatory concerns, but the company has previously stated that it is committed to responsible AI deployment. Critics argue that without stronger guardrails, companies will prioritize short-term savings over long-term workforce stability.
The company has not yet announced a timeline for the changes, but the move is expected to face scrutiny from UK regulators and unions.
