AI Could Deepen BT Job Cuts, CEO Warns
In a dramatic announcement, BT Group’s chief executive has signaled that advancements in artificial intelligence may lead to even more job losses at the telecom giant. This projection potentially extends the already significant workforce reductions planned for the coming years.
AI’s Impact on BT’s Workforce
Allison Kirkby, the BT Group’s CEO, has disclosed that the corporation’s strategies for more than 40,000 job cuts and £3 billion in cost savings by the decade’s close, “did not reflect the full potential of AI.” She indicated that the final size of the company might be further reduced depending on the insights gained from AI.
“Depending on what we learn from AI . . . there may be an opportunity for BT to be even smaller by the end of the decade,”
—Allison Kirkby, Chief Executive, BT Group
In 2023, the British broadband and mobile provider stated it would shed as many as 55,000 roles, including contractors, by the end of the decade. A recent report by the Office for National Statistics indicated that the UK tech sector saw a 5% decrease in employment last year, with AI automation considered a major contributing factor (Source: ONS).
Openreach and Future Plans
Kirkby, who succeeded Philip Jansen a year ago, has also suggested a potential spin-off for Openreach, the company’s network infrastructure division. She stated she felt the value of Openreach wasn’t adequately represented in BT’s share price. If this situation persists, BT would “absolutely have to look at options.”
BT responded to inquiries, stating that they are not presently considering a spin-off for Openreach. Last month, BT reported that strong demand for fibre broadband and cost reductions exceeding £900 million helped boost earnings and cash flow. The resilience of Openreach countered declines in revenue and profits within its business and consumer divisions.
Looking ahead, the company’s strategic decisions concerning Openreach and AI integration will significantly influence its future. Further developments and adjustments within the telecom industry are expected.
