British Gas Parent Centrica to Eliminate 1,300 Jobs as Profit Declines and Trading Growth Slows

British Gas owner Centrica announced plans to reduce its workforce by around 1,300 positions after reporting lower first-half earnings, citing the effects of market volatility, asset sales, and unfavourable weather conditions. Following the announcement, the company's shares fell by as much as 10%.

The planned workforce reduction includes about 500 proposed roles in customer operations, along with fewer outsourced offshore positions. Some of these job reductions have already been carried out.

The company has continued to streamline its business by divesting non-core assets and focusing on LNG-related infrastructure. It also indicated that growth at its energy trading business is expected to slow. According to Centrica, recent hot weather in Britain and disruptions in energy markets linked to the conflict involving Iran have also created challenges.

Centrica has been investing in artificial intelligence and technology to simplify operations. However, Chief Executive Chris O'Shea said the current job reductions are not being driven by AI, but instead reflect changing customer behaviour.

Adjusted core profit for the first half fell 18% to £737 million, mainly due to the disposal of Spirit Energy assets and production outages. O'Shea said market volatility had affected parts of the business and that some operational delivery had been slower than expected.

The company also projected that next year's core profit for its optimisation division, which is a major contributor to Centrica Energy, would align with current 2026 expectations of about £250 million. This remains below the company's medium-term target range of £300 million to £400 million for the trading business.

Centrica said it has asked the UK government for support to keep the Rough gas storage facility operating as part of wider energy security efforts. O'Shea also stated that the company does not plan to renew the facility's operating licence when it expires in April.