The chief executive of BT Group has warned that the rollout of artificial intelligence across the business could result in further job cuts beyond the 55,000 roles the company has already earmarked for redundancy.
In an interview with the Financial Times over the weekend, Allison Kirkby, who assumed the role from former chief executive Philip Jansen last year, mentioned that while BT’s current cost-cutting strategy involves eliminating 40,000 to 55,000 jobs by 2030, it “did not reflect the full potential of 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,” Kirkby explained, indicating that the technology could enable new levels of automation and operational efficiency.
The remarks bring renewed concerns for BT’s workforce, which has already been preparing for substantial reductions as part of a broader £3 billion cost-cutting plan aimed at transforming the telecoms giant into a leaner, more agile entity.
BT, the UK’s largest broadband and telecoms provider, initially revealed its job reduction strategy in 2023 under Jansen’s management. That announcement encompassed plans to streamline operations and reduce dependence on contractors as the company completed its full-fibre broadband rollout.
Since taking the helm, Kirkby has expedited efforts to simplify BT’s operations, including the sale of its Italian business and the divestment of its Irish wholesale and enterprise unit. Last month, BT separated its global division into a standalone business, though the company is allegedly open to offers for that segment of its operations.
During her interview, Kirkby also posed new questions about the future of Openreach, BT’s network infrastructure arm, responsible for deploying fibre broadband across the UK. She stated that the market is undervaluing BT’s share price and not accurately reflecting the true value of Openreach.
“If that continues,” she cautioned, “we would absolutely have to look at options” — implying that a spin-off could be reconsidered once the full-fibre rollout is finalised. Nevertheless, Kirkby noted her preference is for the BT Group share price to represent Openreach’s worth without necessitating separation.
Simultaneously, BT is reportedly contemplating a possible acquisition of TalkTalk, its smaller broadband competitor, which has approximately 3.2 million customers. TalkTalk has faced difficulties since it was taken private by Toscafund in a £1.1 billion transaction in 2021, which left it with £527 million in debt. Any transaction would represent a substantial consolidation in the UK broadband market and potentially invite regulatory scrutiny.
BT’s renewed emphasis on streamlining and automation comes amid wider changes across the telecoms sector, where operators are increasingly adopting AI and digital tools to reduce costs and modernise legacy systems. But for BT’s workforce, it signals a phase of extended uncertainty as the complete implications of AI integration emerge.
