Why is Centrica cutting 1,300 jobs, and what are the main factors behind this decision?

Centrica is cutting approximately 1,300 jobs due to a combination of market volatility, asset disposals (notably Spirit Energy), production outages, adverse weather—including unusually hot conditions in Britain—and Iran war-linked disruptions to energy markets. The job reductions include about 500 staff in customer operations and fewer outsourced offshore positions, with some cuts already completed. CEO Chris O'Shea clarified that AI adoption is not driving these reductions; instead, they stem primarily from changing customer behaviour and operational streamlining as part of Centrica’s strategic refocus on LNG-related infrastructure and margin improvement.

What is Centrica’s outlook for its energy trading arm, and how does it compare to its medium-term targets?

Centrica has warned that growth at its energy trading arm—specifically its optimisation division within Centrica Energy—will stagnate, with core profit for next year expected to be in line with 2026 expectations of around £250 million. This falls significantly short of its medium-term target of £300 million to £400 million for Centrica Energy, which itself contributes to an overarching £2 billion overall target by 2030. The company attributes this softer outlook to ongoing volatility across energy markets, slower-than-expected delivery in certain business areas, and broader external pressures including geopolitical disruptions and weather-related challenges.

British Gas owner Centrica to cut 1,300 jobs, flags slower trading arm growth

Jul 22, 2026

Centrica plans to cut 1,300 jobs after core profits dropped 18% due to market volatility and asset disposals. The company is focusing on LNG infrastructure while warning of stagnating growth in its energy trading division.

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