Centrica, the parent company of British Gas, has announced plans to cut an additional 800 jobs, building on an earlier announcement of 500 layoffs made last month. The company said these redundancies are already underway and will take place over the next two years.

The majority of the proposed job reductions will affect the customer operations team, with approximately 500 positions being eliminated, primarily in customer contact roles. Additional cuts will impact offshore support jobs, resulting in an overall decrease of about 14% in Centrica’s customer operations workforce.

Centrica attributes the job cuts to shifting customer behavior, noting a 20% decline in average call volumes compared to the previous year. The company also highlighted that 90% of its bill-paying customers now use digital channels for support, reflecting a broader industry trend toward online services.

“We’re creating an awful lot of jobs, we are growing, but we’ve got to reflect the changes in customer behaviour and we’ve got to give customers what they want,” said Chief Executive Chris O’Shea, who received a £4.7 million pay package last year.

Separately, O’Shea welcomed Greater Manchester Mayor Andy Burnham’s recent announcement to cut VAT on energy bills starting October 1, a measure expected to save typical households around £45 annually. However, he reiterated his preference for more targeted support measures aimed specifically at those most in need rather than broader blanket reductions.

“Would I rather we had more targeted support? I would — but that will take some time,” O’Shea said, underscoring ongoing discussions about how best to address household energy costs amid economic pressures.