BT Group's Chief Executive, Allison Kirkby, has indicated that advancements in artificial intelligence (AI) may lead to deeper job cuts than previously anticipated. In an interview with the Financial Times, Kirkby stated that BT's existing plan to eliminate over 40,000 jobs and reduce costs by £3 billion by 2030 may not fully account for AI’s potential to streamline operations further. (ft.com)
This development builds upon BT's earlier announcement in 2023, under then-CEO Philip Jansen, to cut up to 55,000 jobs, including contractors, by 2030. Jansen had emphasized the company's intention to rely on a significantly smaller workforce and a reduced cost base by the end of the decade. (theguardian.com)
Kirkby, who assumed the role of CEO in February 2024, has also opened the door to a possible future spin-off of Openreach, BT's network infrastructure business. She expressed concerns that Openreach's value is not adequately reflected in BT's share price and suggested that if this situation persists, the company would need to consider alternative options. (ft.com)
In response to these developments, BT stated that Openreach is not currently under active consideration for a spin-off. The company also highlighted that strong demand for fibre broadband and over £900 million in cost savings have bolstered its full-year earnings and cash flow. Resilience at Openreach has helped offset declines in revenue and profit in BT's business and consumer units, where legacy voice services continue to decline and handset sales have fallen. (reuters.com)
These strategic moves underscore BT's ongoing efforts to adapt to technological advancements and market dynamics, aiming to enhance efficiency and shareholder value in a rapidly evolving telecommunications landscape.
Source: iTnews BT boss expects AI to deepen job cuts
