Sky Cuts Thousands of Contact Center Jobs to “Improve Customer Service”

As an industry trend develops - what does this mean for the rollout of AI?

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Published: March 28, 2025

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Thousands of Sky Contact Center jobs are set to be axed across the UK, impacting 7% of its total workforce. 

Two thousand jobs will be cut, with three sites closing across Stockport, Sheffield, and Leeds.

While the proposals are subject to consultation with staff and unions across the branches, a Sky Spokesperson explained that the closures would help make it “future-ready.” 

This comes as the company changes direction from phone to digital communications. 

A spokesperson said, “We’re transforming our business to deliver quicker, simpler, and more digital customer service. Our customers increasingly want choice, the ability 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 center of excellence for customer service, alongside cutting-edge digital technology to make our service seamless, reliable, and available 24/7.

While cutting jobs to improve customer service seems like an oxymoron, implementing AI across services aims to not only plug the gap left by employees but also improve CX. 

According to Sky, a poll of 10,00 customers revealed they’d prefer a “greater choice about how and when they connect with Sky.” 

As More Companies Switch to Digital Communications, What Does This Mean For Jobs?

The shift to digital communications and AI in contact centers is transforming the industry, but it doesn’t necessarily spell doom for jobs. 

AI excels at handling repetitive tasks, such as resetting passwords or tracking deliveries, which reduces the need for human agents in these areas. 

However, complex and emotionally charged interactions still require human intervention, as AI struggles to understand nuances and provide empathy.

Many companies are adopting a “human-in-the-loop” approach, where AI handles routine tasks but escalates complex cases to human agents. 

This hybrid model ensures that customer service remains effective and empathetic. For example, AI systems can detect sentiment or frustration in a customer’s tone and route the call to a human agent for resolution. 

While automation may reduce the number of roles, it also creates opportunities for humans to focus on higher-value tasks, such as managing escalations and improving customer relationships. 

A Sky spokesperson added, “Thousands of expert advisers will continue to provide personalized support on the phone when it matters most.”

Focus on Livingston Investment Highlights Sky’s ‘Hybrid’ Approach

Speaking to CX Today, Muj Choudhury, CEO and Founder of RocketPhone, discussed this industry trend. 

They said, “The move raises important questions about finding the right balance between new automated systems and the irreplaceable human touch that quality customer service depends on.”

As customers change what they want and expect from speaking to agents over the phone, companies everywhere are scratching their heads trying to figure out how to keep up without letting service standards slip.

Sky’s big investment in its Livingston center and promise of 24/7 service suggest they recognize what many of us already know—the sweet spot is probably somewhere in the middle. 

Let technology handle the simple stuff, but keep real people available for when things get complicated or when customers just need someone who understands their frustrations. 

Wider Job Cuts Are Occuring – But Upskilling On The Way

There have been other job cuts across the industry. 

Salesforce is reportedly slashing more than 1,000 jobs.  

Bloomberg broke the news, citing a “person familiar with the matter,” who confirmed that affected employees could apply for internal positions. 

The source also stated that it was unclear which divisions were most affected by the reductions. 

Additionally, in 2024, During SAP’s Q2 earnings call, the enterprise tech giant shared an update on its ongoing “workforce transformation” program.

The update revealed that 2,000 positions had been scrapped last quarter, with the affected employees departing voluntarily, leaving non-voluntarily, or being reskilled.

Altogether, SAP planned to shut down 8,000 jobs before the year’s end.

However, more turnover was expected toward the end of 2024, so SAP could ramp up its reskilling and rehiring processes.

What do you think about the increased job cuts across the contact center space? Let us know on our Reddit Community. 

 

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