AO World says it is outsourcing up to 200 UK call-centre roles to South Africa, citing rising labour costs. The Guardian reports that around 150 jobs have already been lost in Bolton and that the company is shifting most call-centre work overseas in response to “ongoing inflationary cost pressures,” particularly higher employment costs. AO World expects the move to generate about £4 million in annual savings.
Retail Gazette adds that AO World chief executive John Roberts attributes the decision to government-related changes affecting employment and wages, including the employment tax and wage increases. It reports that the retailer has already offshored around 150 sales roles and saved about £2 million, with annualised savings projected to rise to £4 million.
Both outlets link the restructuring to cost pressures and describe substantial near-term job impacts and savings estimates. The Guardian also notes AO World’s recent financial performance and that the company distributes £20 million to shareholders.
