UK's largest telecom company may cut up to 55,000 jobs; CEO Allison Kirkby says: earlier plans to cut more than 40,000 jobs did not …
BT Group
's chief executive has warned that artificial intelligence could trigger even deeper job cuts at the UK's biggest telecoms company, with the broadband provider potentially slashing its workforce beyond the 55,000 positions already marked for elimination by 2030 as AI transforms operations across the industry.
Allison
Kirkby
told the Financial Times that BT's existing plans to cut more than 40,000 jobs and strip out £3 billion in costs "did not reflect the full potential of AI." The CEO emphasized that rapid advances in artificial intelligence could enable the company to operate with significantly fewer employees.
"Depending on what we learn from AI, there may be an opportunity for BT to be even smaller by the end of the decade," Kirkby stated in the weekend interview, signaling that the FTSE 100 company's workforce reduction could exceed current projections.
Openreach spin-off under consideration
The telecoms giant is also evaluating a potential separation of its valuable Openreach broadband network division, with analysts estimating its worth at £30 billion, substantially higher than BT's current £18.5 billion market value.
Kirkby indicated that BT would "absolutely have to look at options" if Openreach's value continues to be underrepresented in the company's share price. However, she expressed preference for the market to properly recognize Openreach's worth rather than pursuing a spin-off.
Since taking over as CEO in February 2024, Kirkby has accelerated BT's streamlining efforts, selling off international assets including Italian and Irish operations while refocusing on the UK market. The strategy has proven successful with investors, as BT shares have surged 65% during her tenure.
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