BT CEO Warns AI Could Trigger More Extensive Job Cuts by 2030

In a bold statement that has captured the industry’s attention, BT Group CEO Allison Kirkby has highlighted the potential for artificial intelligence to drive even deeper job cuts than previously envisioned as the company accelerates its cost-cutting initiatives.

Kirkby pointed out that AI could far exceed BT’s current plans for workforce reductions, suggesting that the telecom giant is on the cusp of a transformative shift. In an interview with the Financial Times, she noted that BT’s existing strategy may not fully grasp the revolutionary impact that emerging technologies will have on its operations.

“Our earlier goal to reduce over 40,000 roles and save £3 billion by 2030 does not embrace the full promise of AI,” Kirkby stated emphatically. She added, “As we explore the capabilities of AI, there could be an opportunity for BT to streamline even further by the decade’s end.”

This announcement comes on the heels of BT’s 2023 plan to eliminate up to 55,000 positions, including contractors, by 2030, aimed at creating a significantly leaner organization. Former CEO Philip Jansen emphasized the necessity of a reduced workforce and cost structure. 

Since taking the helm, Kirkby has been at the forefront of guiding BT through this critical era of digital transformation. As the largest broadband and mobile network operator in the UK, BT is tasked with modernizing outdated infrastructure while investing heavily in next-generation fiber and 5G networks. 

By deploying AI and automation throughout its operations, the company is poised to elevate customer service quality, optimize network efficiency, and streamline back-end processes. Kirkby’s insights underscore the reality that disruptive technologies are not merely altering service delivery; they are fundamentally reshaping the workforce needed to support these advancements. 

While the prospect of deeper job cuts raises valid concerns among employees and unions, BT’s leadership firmly believes that embracing AI is essential to staying competitive in an ever-changing digital landscape.

Additionally, Kirkby revealed her openness to the idea of a spin-off of Openreach, BT’s semi-autonomous network infrastructure arm, should its value continue to be undervalued in the market. “We must definitely consider all options,” she affirmed, although this is not an immediate focus.

Openreach has been a resilient component of BT’s structure, contributing stability even amid challenges faced by other divisions. Recent reports highlighted strong demand for fiber broadband and revealed over £900 million in cost savings that bolstered full-year earnings and improved cash flow. 

However, revenue and profit declines in BT’s business and consumer divisions reflect struggles with falling handset sales and the ongoing decline of traditional voice services. Responding to the Financial Times interview, BT confirmed via email to Reuters that there are no active plans for changes to Openreach at the present time and withheld further comment on Kirkby’s statements. 

The potential spin-off of Openreach could unlock substantial value for shareholders, though it would also require navigating a complex landscape of regulatory and operational challenges. Analysts have long debated the merits of separating BT’s infrastructure business from its retail operations, arguing it could sharpen strategic focus for both sectors.

As BT charts its path forward, Kirkby envisions a future not just of a smaller company, but of a smarter one, leaner, more agile, and driven by the power of AI. Yet, this bold transition comes with significant implications for thousands of employees whose roles may become obsolete in the pursuit of innovation.

As AI continues to gain influence, BT’s transformation journey promises to be both ambitious and intricate, demanding a thoughtful balance between operational efficiency and accountability. 

The time to adapt is now, and the stakes have never been higher.