BT CEO Signals Potential for Deeper Job Cuts as AI Advances, Considers Openreach Spin-off
8 Sources
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BT chief says AI could deliver more job cuts
As others roll back use of tech due to quality, customers preferring to talk to humans Not content with a corporate blueprint to cut up to 55,000 employees by 2030, UK telecoms giant BT now says even more staff could be replaced with AI, despite the experience of some orgs that have already tried
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BT chief eyes deeper job cuts as AI becomes more powerful
Allison Kirkby said advances in artificial intelligence could deepen significant job cuts under way at BT, as the chief executive of the UK telecoms group opened the door to a possible future spin-off of Openreach. Kirkby told the Financial Times that BT's plans to cull more than 40,000 jobs and
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BT CEO eyes deeper job cuts as AI becomes more powerful, FT reports
June 15 (Reuters) - BT Group (BT.L), opens new tab Chief Executive Allison Kirkby said advances in artificial intelligence could deepen significant job cuts under way at the British telecoms company, the Financial Times reported on Sunday. Kirkby told the newspaper that BT's plans to cull more
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AI could lead to more job cuts at BT, says chief executive
Allison Kirkby wants to streamline telecoms company, which is already planning to shed 55,000 workers The chief executive of BT has said that advances in artificial intelligence could presage deeper jobs cuts at the FTSE 100 telecoms company, which has already outlined plans to shed up to 55,000
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BT CEO warns increasing AI could lead to greater job cuts
BT CEO Allison Kirkby has indicated the increasing adoption of artificial intelligence could lead to even deeper cuts beyond current plans to trim the company's workforce. Kirkby confirmed plans, which are hoped to save £3 billion by 2030, to cut 40,000-55,000 jobs by the end of the decade. In an
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BT could make deeper job cuts amid AI revolution - FT
(Alliance News) - BT Group PLC's boss said the emergence of artificial intelligence technology could lead to the telecommunications firm deepening job cuts, the Financial Times reported on Sunday. BT back in May 2023 announced plans to cut up to 55,000 jobs by the end of 2030. The plans were
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BT CEO eyes deeper job cuts as AI becomes more powerful, FT reports
(Reuters) -BT Group Chief Executive Allison Kirkby said advances in artificial intelligence could deepen significant job cuts under way at the British telecoms company, the Financial Times reported on Sunday. Kirkby told the newspaper that BT's plans to cull more than 40,000 jobs and strip out 3
[8]
BT boss Kirkby expects AI to deepen job cuts, FT reports
(Reuters) -BT Group Chief Executive Allison Kirkby said advances in artificial intelligence could deepen significant job cuts under way at the British telecoms company, the Financial Times reported on Sunday. Kirkby told the newspaper that BT's plans to cull more than 40,000 jobs and strip out 3
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BT's CEO Allison Kirkby suggests that advancements in AI could lead to more job cuts beyond the already planned 55,000 by 2030. She also hints at a possible future spin-off of Openreach if its value isn't reflected in BT's share price.
BT's AI-Driven Job Cut Strategy
BT Group, the UK's largest telecoms company, is considering deeper job cuts as artificial intelligence (AI) technology advances. CEO Allison Kirkby has indicated that the company's current plan to reduce its workforce by up to 55,000 jobs by 2030 "did not reflect the full potential of AI"
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. This strategy aims to streamline operations and boost profit margins in an increasingly competitive market.
Source: FT
Potential for Further Workforce Reduction
Kirkby stated, "Depending on what we learn from AI... there may be an opportunity for BT to be even smaller by the end of the decade"
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. The company's initial plan, announced in 2023, aimed to cut 40,000 to 55,000 jobs, including contractors, by 2030. This reduction would account for approximately 42% of BT's workforce3
.AI Implementation and Customer Service Concerns
BT has already indicated that around 10,000 job cuts are likely to be made in customer services due to automated digitization
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. However, recent industry experiences suggest caution in over-relying on AI for customer service. Companies like Klarna and Duolingo have faced customer dissatisfaction after implementing AI-driven customer service, leading to the rehiring of human agents3
.Financial Strategy and Cost-Cutting Measures
The job cuts are part of a broader strategy to strip out £3 billion of costs by the end of the decade
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. BT has been focusing on streamlining its operations, including selling off its Italian business and Irish wholesale and enterprise division. The company has also carved out its international business into a separate unit, potentially open to offers1
.Openreach Spin-off Consideration
Kirkby has opened the door to a possible future spin-off of Openreach, BT's network infrastructure business. She stated that if Openreach's value is not reflected in BT's share price, the company "would absolutely have to look at options"
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. However, Kirkby emphasized that her preference would be for BT's share price to reflect Openreach's worth rather than spinning it off5
.Related Stories
Market Position and Future Outlook
Despite the job cut plans, BT aims to exploit market disruptions, such as the recent merger of Vodafone and Three, to grow its retail brands, EE and Plusnet
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. The company is also considering running its retail brands on alternative networks in areas where it's uneconomical for Openreach to build its own fibre network1
.
Source: TechRadar
Employee and Union Concerns
The aggressive cost-cutting measures have led to concerns among BT's workforce.
Source: The Register
The company is facing a revolt from manager-grade staff over what has been described as a "derisory or non-existent pay rise"
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. This situation affects approximately 15,000 employees, with two-thirds offered a 1.28% raise and others receiving nothing, according to the trade union Prospect3
.References
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