Centrica, the owner of British Gas, said on Thursday it plans to cut around 1,300 jobs after reporting weaker profits due to market volatility, asset disposals and adverse weather conditions.
The announcement sent the company’s shares down by as much as 10% in trading.
The planned workforce reduction, some of which has already been implemented, includes the proposed elimination of around 500 customer operations roles, along with a reduction in outsourced offshore positions.
Centrica said it continues to streamline its business by disposing of non-core assets and increasing its focus on liquefied natural gas (LNG) infrastructure in an effort to improve profitability.
The company also warned that growth at its energy trading division is expected to stagnate, while citing additional challenges including unusually hot weather in Britain and energy market disruptions linked to the conflict involving Iran.
Centrica has been increasing investment in artificial intelligence (AI) and technology upgrades as part of a broader effort to simplify its operations.
Chief Executive Chris O’Shea said the latest job cuts were not primarily driven by AI.
“AI isn’t driving these particular job reductions; that’s mainly due to changing customer behaviour,” O’Shea told reporters following the company’s earnings announcement.