BT Group Chief Executive Allison Kirkby has indicated that artificial intelligence (AI) could lead to even deeper job cuts than originally planned at the British telecoms giant, according to a report by the Financial Times.
Kirkby revealed that BT’s current plan to eliminate over 40,000 jobs and cut £3 billion ($4 billion) in costs by the end of the decade may not fully reflect the potential impact of emerging AI technologies.
“Depending on what we learn from AI… there may be an opportunity for BT to be even smaller by the end of the decade,” she told the FT.
BT Job Cuts Could Surpass 55,000 by 2030 with AI Efficiency
BT, the UK’s largest broadband and mobile provider, previously announced in 2023 that it aimed to slash up to 55,000 roles, including contractors, by 2030. Former CEO Philip Jansen stated at the time that the company would transition to a leaner workforce and lower cost base as it embraced automation and digital transformation.
Now, under Kirkby’s leadership, the company is reassessing its restructuring trajectory in light of new AI capabilities that could further automate customer service, network management, and back-office functions.
BT CEO Opens Door to Openreach Spin-Off
In the same FT interview, Kirkby also signaled openness to a potential spin-off of Openreach, BT’s infrastructure division responsible for the UK’s broadband network.
She noted that the market undervalues Openreach and hinted that if the disparity between the division’s performance and BT’s overall share price continues, the group would “absolutely have to look at options.”
In an emailed statement to Reuters, BT clarified that a spin-off of Openreach is not actively under consideration at the moment and declined to comment further on Kirkby’s remarks.
Strong Fibre Demand and Cost Savings Support BT Earnings
Despite uncertainty around restructuring, BT reported positive full-year results last month. Highlights included:
- £900+ million in cost savings
- Stronger earnings driven by resilient performance at Openreach
- Continued demand for fibre broadband services
These gains helped offset revenue and profit declines in BT’s business and consumer units, which continue to face headwinds due to:
- Falling legacy voice service usage
- Declining handset sales
Outlook: AI to Reshape BT’s Workforce and Strategy
As AI adoption accelerates, BT is positioning itself for further transformation. Kirkby’s comments suggest that AI integration could not only boost efficiency but also reshape the company’s long-term workforce strategy, potentially pushing job cuts beyond the current estimates.
Analysts will be closely watching how BT balances AI-driven innovation, workforce restructuring, and the strategic future of Openreach, especially amid investor concerns over share value and profitability.
