British Gas Trims 1,300 Jobs, Leverages AI Chatbots to Boost Profits

British Gas is cutting 1,300 jobs while claiming that 90% of its customers now prefer digital channels.

The Surge of Digital Touchpoints

■90% of customers choose digital channels on first contact

■Call volume has dropped 20%

■A 14% staff reduction is slated for Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds

Dual Strategy: Workforce and Profitability

■800 additional redundancies on top of the previously announced 500 cuts

■Retail profit rose to £346 million, up from £338 million a year earlier

■Domestic customer base fell to 7.45 million (down from 7.5 million)

■£112 million compensation payout for forced‑fit pre‑payment meters during the Russian gas crisis

CEO’s Strategic Remarks

Centrica CEO Chris O’Shea stressed that “AI isn’t driving these job cuts; it’s a reflection of changing customer behaviour,” and highlighted the intention to create more roles around the digital interface.

Market analysts note that a major utility’s shift of labor to AI could intensify long‑term efficiency pressures across the sector and spark volatility in peer stock prices. While AI‑driven service models may offset short‑term employment losses, investors should remain cautious of margin squeezes and regulatory headwinds.