AO World moves up to 200 UK call centre jobs to South Africa
11 reported
Online electrical retailer AO World has announced it is outsourcing up to 200 UK call centre roles to South Africa, citing rising labour costs. The company reported a 145% jump in pre-tax profits to £50.5 million for the year ending 31 March and is distributing £20 million in special payments to shareholders. About 150 roles in phone sales and enquiries have already been transferred from its Bolton call centre to South Africa over the past 12 to 18 months, with an additional 50 expected to move as UK employees leave voluntarily rather than through redundancies. More than 100 roles handling complex customer queries will remain in the UK. AO said overall employee numbers fell by 340 to 2,800 in the year due to efficiencies across the business. Founder and CEO John Roberts stated the shift was necessary to keep prices lower for shoppers, blaming government policies for increasing employment costs. The company also conducted a small-scale trial of robotics in its warehousing operations, with early results described as encouraging.
What’s reported
AO World is outsourcing up to 200 UK call centre roles to South Africa.
The company cited rising labour costs and inflationary pressures for the move.
Pre-tax profits jumped 145% to £50.5 million in the year to 31 March.
AO is handing £20 million in special payments to shareholders.
About 150 roles have already been switched from Bolton to South Africa over 12 to 18 months.
A further 50 roles are expected to move as UK employees leave voluntarily.
More than 100 roles handling complex queries will remain in the UK.
Overall employee numbers fell by 340 to 2,800 in the year.
AO expects to save about £4 million a year from the outsourcing.
Sales rose 11.4% to nearly £1.3 billion in the year.
The company conducted a small-scale exploratory trial of robotics in warehousing.
Key figures
John Roberts, founder and chief executive of AO World
Simon Wolfson, boss of fashion retailer Next (mentioned in criticism of new rules)
Sources: The Guardian
