British media firm Sky Group has announced plans to cut about 2,000 jobs at its customer service centres across three sites in the country. The job cuts represent about 7% of the workforce of the company, which is owned by the US-based Comcast.
According to The Guardian, Sky plans to close call centres in Stockport, Sheffield, and Leeds while scaling back operations in Newcastle and Dunfermline. With these moves, the company plans to reduce its UK sites from 10 to seven.
The decision is part of Sky’s strategy to enhance digital services and make the company “future-ready” as it shifts from handling customer inquiries over the phone to digital communication.
As per the report, Sky surveyed 10,000 customers and claimed they wanted more flexibility in how and when they connect with the company. It added that “thousands of expert advisers will continue to offer personalised support over the phone when it matters most.”
Sky, which also owns Sky News, anticipates a decline in annual call volumes from 25 million to 17 million in the coming years.
Now, Sky says it is investing in a new “centre of excellence” for customer service at its Livingston campus in Scotland to provide 24/7 support.
“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,” a company spokesperson told The Guardian.
These layoffs come a year after Sky cut 1,000 jobs, primarily affecting workers who installed equipment in households.
Sky’s annual losses doubled last year as higher spending on programming, broadband services, and hardware like Sky Glass TVs pushed costs up. The company reported a £224 million operating loss for 2023, up from £111 million in 2022. Revenue remained flat at £10.23 billion.
Its direct-to-consumer business grew 1.6% to £8.5 billion, driven by rising demand for Sky Glass, mobile, and broadband, alongside price increases. Advertising revenue fell slightly to £1.2 billion. Sky attributed the loss to declining demand for its Sky Q box, as more consumers shift to streaming and smart TVs.