Sky cuts 2000 jobs in UK, shifts to AI chatbots amid streaming losses

Sky cuts 2000 call centre staff after big financial loss. Photo / 123rf

Broadcaster cuts 7% of workforce amid heavy losses and switch to streaming

Sky is cutting 2000 call centre staff in the UK and replacing them with chatbots, saying people are tired of phoning customer service agents.

The broadcaster will close three of its 10 customer service centres in Stockport, Sheffield and Leeds as it cuts 7% of its workforce.

Instead, it will invest more in round-the-clock online chat representatives – who will be based in different countries – as well as artificial intelligence (AI) chatbots.

Sky claimed that the majority of customers now wanted to handle tasks like renewing contracts and paying bills through its app and website rather than over the phone.

The company, which is owned by the US media conglomerate Comcast, said it expected to receive millions fewer calls from customers in the coming years, with annual volumes dropping from 25 million to 17 million by 2029.

Sky is swinging the axe as it battles heavy losses and tries to navigate the switch from lucrative satellite contracts to the more competitive streaming landscape.

The broadcaster reported a £773 million (NZ$1747m) loss for 2023, its most recent set of accounts, largely due to write-downs in its Italian and German businesses. Its expenses rose as it paid out more for football rights.

It comes after Sky last year cut around 1000 jobs, including installation engineers, as more people access its TV services over the internet rather than through satellite dishes.

The changes are potentially risky given Sky has long had a reputation for good customer service. Ofcom figures show it is the least complained-about telecoms provider in the UK.

Sky said it would continue to have thousands of phone advisers, and that it would invest millions in its Livingston campus in Scotland, including a “centre of excellence”.

It said the decision came after surveying 10,000 customers and finding that nine in 10 wanted to be able to contact the company in more ways than over the phone.

A Sky spokesman said: “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.

“We’re investing in a new centre of excellence for customer service, alongside cutting-edge digital technology to make our service seamless, reliable and available 24/7. This is about building a future-ready Sky that continues to put our customers and their needs first.”

BT, a telecom firm in the UK, has also said that it expects to replace thousands of customer service workers with AI.

British bank NatWest said last week it would use technology from OpenAI, the maker of ChatGPT, to develop a digital assistant for customers.