British media giant Sky Group has revealed plans to cut approximately 2,000 jobs from its customer service centres as part of a strategic shift towards artificial intelligence (AI) and online services. This decision, which affects about 7% of its workforce, comes as the company aims to modernise its operations and respond to changing customer preferences.
Key Takeaways
Sky will close three call centres in Stockport, Sheffield, and Leeds, while scaling back operations in Newcastle and Dunfermline.
The job cuts are part of a broader strategy to enhance digital customer service and reduce reliance on phone support.
Sky anticipates a significant decline in call volumes, from 25 million to 17 million annually by 2029.
The company plans to invest in a new customer service centre in Livingston, Scotland, to support its digital transformation.
Job Cuts Overview
Sky's decision to reduce its workforce is a response to a survey of 10,000 customers, which indicated a strong preference for digital communication methods over traditional phone calls. The company has stated that while it will reduce call centre staff, it will still maintain a team of expert advisers for complex issues that require personal assistance.
The affected call centres are located in:
Stockport
Sheffield
Leeds
Additionally, operations in Newcastle and Dunfermline will be scaled back, leading to a total reduction of sites from ten to seven across the UK.
Strategic Shift Towards Digital Services
Sky's transition to AI and online services is part of a larger trend in the telecommunications industry, where companies are increasingly adopting technology to improve customer service efficiency. The company aims to create a "centre of excellence" in Livingston, which will focus on providing 24/7 support through advanced digital tools.
A spokesperson for Sky commented, "We’re transforming our business to deliver quicker, simpler, and more digital customer service. Our customers increasingly want choice—to speak to us on the phone when they need us most and the ease of managing everyday tasks digitally."
Financial Context
This announcement follows a challenging financial year for Sky, which reported a £224 million operating loss in 2023, a significant increase from £111 million in 2022. The losses were attributed to rising costs in programming and hardware, alongside a decline in demand for traditional satellite services as more consumers shift towards streaming options.
In January 2024, Sky had already cut 1,000 jobs, primarily affecting engineering roles, as the demand for satellite installations decreased. The current job cuts are seen as a necessary step to align the workforce with the company's evolving business model, which increasingly focuses on internet-based services.
Conclusion
Sky's decision to cut 2,000 jobs marks a significant shift in its operational strategy, reflecting broader changes in consumer behaviour and technological advancements. As the company invests in AI and digital services, it aims to enhance customer experience while navigating the challenges of a competitive media landscape. The future of customer service at Sky will likely hinge on the successful implementation of these digital tools, ensuring that customer needs remain at the forefront of its operations.
Sources
UK’s Sky Group to Cut 2,000 Customer Service Jobs in Digital Shift, Outlook Business.