Centrica is set to slash 1,300 jobs as it undergoes a technology-led transformation of the business.

Around 500 role cuts were revealed last month, but Centrica has now confirmed a further 800 jobs will also go, bringing the total to 1,300.

It comes following news that Centrica had seen a drop in its first-half profits, with adjusted earnings before tax and other charges falling to £737million from £900million the previous year.

The Times reports that drop was driven principally by the sale of most of the assets of its Spirit Energy oil and gas business in the North Sea.

In its half-year financial report, Centrica said it was implementing a “technology-led transformation programme” designed to reduce operating costs and “actively address the root causes of customer contact and simplify journeys, supported by the targeted deployment of artificial intelligence tools”.

Chris O’Shea, the Chief Executive of Centrica, stressed that the cuts were not being driven by AI, but rather reflected a "change in customer behaviour”. 

He added: “What we’re seeing just now is about 90% of our customers actually use digital channels in the first instance and we’ve seen a 20 per cent reduction in customer calls."

FSTE100

The UK's flagship share index, the FTSE 100, was down 4 points at 10,666 shortly after opening this morning.

Brent crude oil futures were down 1.89%, sitting at $98.79 a barrel this morning.

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