Centrica Sheds 1,300 Jobs Amid Digital Shift and Profit Dip at British Gas

British Gas owner Centrica is set to cut a significant 1,300 jobs over the next two years, including an additional 800 announced recently, as it grapples with a major shift in customer behaviour and an 18% drop in first-half adjusted core profit. This overhaul will impact roughly 14% of its customer operations workforce, affecting key call centre locations across the UK. The energy giant attributes these reductions primarily to a structural change in how customers interact, with a staggering 90% now opting for digital channels like apps and WhatsApp, leading to a 20% decrease in traditional customer calls. While Centrica CEO Chris O'Shea maintains that artificial intelligence isn't the primary driver for these cuts, the GMB union strongly contends that these roles are indeed being replaced by AI and chatbots. This comes as Centrica also faces headwinds from market volatility, asset disposals, and slower growth in its energy trading arm, Centrica Energy. Looking ahead, Centrica is pouring £92 million into technology investments while simultaneously hiring engineers and 500 apprentices this year, indicating a strategic pivot towards a more digitally-driven and technically skilled workforce. The company is also pushing for government intervention to keep the vital Rough gas storage facility open beyond April, highlighting the ongoing concerns around UK energy security. Investors will be watching how these dual strategies of cost-cutting and targeted investment play out against a backdrop of evolving energy markets and customer expectations.