Sky has announced plans to cut 2,000 jobs at its customer service centers and close three of its UK contact centers.
“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 Sky spokesperson said of the announcement.
The Comcast-owned media and telecom giant has said the move is part of a plan to switch its capabilities as customer preferences change.
A Cold Calculation on Contact Centers
The closure of the three sites—Stockport, Sheffield, and Leeds—will reduce Sky’s contact center footprint in the UK from 10 to seven, and the cuts will affect 7 per cent of its total workforce.
Sky has billed the planned closures as something to make the company “future-ready” as it shifts from dealing with customers over the phone to digital communications.
This move is motivated by the company expecting its calls to drop from 25 million to 17 million annually in the next few years.
As a result, the company says it plans to build a new center of excellence, which will see a multimillion-pound investment being made at its Livingston site to adapt to an increasingly digital world.
“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,” the spokesperson explained.
Although many in the industry have been insisting that voice as a medium is evolving, the latest announcement may come as an unwelcome surprise for its proponents.
Is Voice in Trouble?
Sky’s move is the materialization of a trend many in the industry have been seeing: the declining medium of voice.
This is for a number of reasons, but principally for Sky, is consumer preference.
A 2024 survey of 2,000 people from price comparison company Uswitch found that nearly 70% of 18-34’s prefer a text to a phone call.
As a result, companies have been focusing more on integrating new omnichannel capabilities that help expand their ability to connect to their customers via their chosen communication platform.
“Sky’s decision to close three call centers is yet another sign of the broader industry shift towards digital customer engagement,” Muj Choudhury, CEO and founder of RocketPhone, explained.
Not only that but in this currently cash-strapped global economy characterized by high interest rates, cutting agent costs for omnichannel messaging capabilities which can increasingly be automated, it seems like a no-brainer.
“Digital transformation is happening everywhere but it doesn’t always make things better for customers,” Choudhury said. “Telecoms companies face particular challenges here. Our research shows that call teams spend more than half of their day working on paperwork rather than speaking to customers. While AI can certainly help free up some time, we can’t overlook the human element.”
Sky polled 10,000 customers prior to its decision and said they had asked for greater choice about how and when they connect with the company.
Thus the company is not taking a pioneering stance, it is moving to meet customer demands.
This could feel worrying for voice providers as many may fear that they are fighting against the tide when trying to sell their main offering.
Yet despite the cuts and the greater interest on always-on digital communications, the company insists “thousands of expert advisers will continue to provide personalised support on the phone”.
This may come as a welcome relief for many, for now at least, as the company is not disregarding voice in its entirety through either its action or sentiment.
“Sky’s big investment in its Livingston centre, along with promising 24/7 service, suggests they recognise what many of us already know – the sweet spot is probably somewhere in the middle,” Choudhury said.
“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 frustration.”
Does news that Sky is closing three contact centers and cutting 2000 associated jobs in favour of digital communication have you concerned about the future of voice?
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