BT Chief Executive Signals AI Could Drive Further Job Reductions Beyond Current 55,000 Target

BT’s chief executive Allison Kirkby has indicated that artificial intelligence advancements might lead to more extensive job cuts at the FTSE 100 telecommunications giant, extending beyond its existing plan to reduce its workforce by up to 55,000 positions.

The company’s current strategy, announced two years ago, aims to eliminate between 40,000 and 55,000 roles as part of its transformation into a more streamlined organisation by 2030. However, Kirkby revealed in a recent Financial Times interview that this reduction plan, which includes £3bn in cost savings, “did not reflect the full potential of AI”.

Under Kirkby’s leadership, BT has accelerated its operational streamlining efforts, including the divestment of its Italian operations and Irish wholesale and enterprise division. The telecoms provider recently separated its international business into a standalone unit, with reports suggesting the company remains receptive to potential offers for this segment.

The chief executive expressed concerns regarding the market’s valuation of Openreach, BT’s broadband network division, stating that its true worth is not adequately reflected in the company’s share price. While she maintains a preference for market recognition of Openreach’s value within BT, Kirkby acknowledged that alternative options might need consideration once the full fibre network upgrade is complete.

Recent developments suggest BT is exploring a potential acquisition of TalkTalk, a smaller competitor with approximately 3.2 million customers. TalkTalk has faced challenges since its £1.1bn privatisation by Toscafund in 2021, which added £527m to its debt burden.

The telecommunications sector continues to evolve rapidly, with AI technology emerging as a crucial factor in shaping workforce requirements and operational efficiency. BT’s strategic direction under Kirkby’s leadership demonstrates a clear focus on technological advancement and organisational optimisation, potentially resulting in a significantly reduced workforce by the decade’s end.