Centrica and Monday.com announce AI-related job cuts

Customers favour AI, Centrica says

British Gas owner Centrica and workplace software firm Monday.com have unveiled restructuring plans, saying they must adapt to changing customer behaviour and the rapid rise of AI.

Centrica plans to eliminate 1,300 roles over the next two years, including 800 positions linked to what it described as the targeted deployment of AI tools, in addition to 500 job cuts announced previously.

The reductions will affect customer service and administrative teams in Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds. Some positions will disappear through natural staff turnover, while others will be removed through redundancies.

Chief executive Chris O'Shea rejected suggestions that AI was the primary reason for the cuts, arguing that customers are increasingly choosing digital services over telephone support.

He said more than 90% of customers now begin their interactions through digital channels and that customer calls have fallen by around 20%, making it necessary for the company to adapt its workforce.

"We've got to reflect the changes in customer behaviour. We expect to grow more jobs around our digital interface, and maybe having fewer people on the phones," O'Shea said.

He added that while fewer employees may be needed to answer phones, the company expected to create more roles focused on digital customer services.

Vulnerable customers could be left behind

Organisations representing older people criticised the announcement, saying a greater reliance on AI-powered customer support could make it harder for some people to access essential services.

Campaign group Silver Voices said replacing human interactions with automated systems risked disadvantaging vulnerable customers who may struggle to use AI-driven services.

Its director, Dennis Reed, argued that speaking to a machine could not replace effective customer service and warned that businesses should be more cautious before expanding the use of AI.

"Talking to a machine is not good customer service and these job cuts will be counter-productive for shareholders," Reed said.

"The more AI is rolled out, the more dangers are identified and a national pause for reflection is required."

Age UK also raised concerns, saying a significant minority of older people remain offline and would continue to rely on speaking directly with customer service staff, particularly when dealing with complex or urgent issues.

Monday.com reshapes business

Separately, Israeli software company Monday.com said it would cut approximately 620 jobs, around 20% of its global workforce, as it restructures [pdf] its business around AI.

In a letter to employees, co-founders Roy Mann and Eran Zinman described the move as the company's most difficult decision since it was founded, but said the changes reflected a shift in how software companies must operate as AI transforms the industry.

The company said it was evolving from providing software that helps organisations manage work to developing tools that enable employees and AI agents to work together.

Management insisted the layoffs were not intended to reduce costs or replace workers with AI. Instead, it said the company needed a leaner organisational structure with fewer management layers, smaller autonomous teams and a different approach to customer support as demand grows for AI-based products.

"Improving margins was not the purpose of this decision," the company said.

"We intend to reinvest the vast majority of the savings in our people, our products, AI, and future growth."