BT Group CEO Allison Kirkby indicated in an interview with the Financial Times that advances in artificial intelligence (AI) might deepen the extensive job cuts already planned at the British telecom giant.
Kirkby noted that BT’s current plan to cut over 40,000 jobs and reduce costs by £3 billion ($4 billion) by 2030 “did not reflect the full potential of AI.” She suggested that depending on AI developments, BT could become “even smaller by the end of the decade.”
The company had previously announced plans to cut up to 55,000 jobs, including contractors, by 2030 under former CEO Philip Jansen, aiming for a leaner workforce and substantially lowered costs by decade’s end.
Kirkby, who took over from Jansen a year ago, also hinted at the possibility of spinning off Openreach, BT’s network infrastructure arm. She expressed concerns that Openreach’s value is not currently reflected in BT’s share price, stating that if this undervaluation continues, BT “would absolutely have to look at options.”
In response to Reuters, BT clarified that a spin-off of Openreach is not an active consideration at this time and did not comment further on Kirkby’s remarks.
BT’s recent financial update highlighted strong fibre broadband demand and over £900 million in cost savings, which helped sustain full-year earnings and improve cash flow. Growth in Openreach compensated for revenue and profit declines in the business and consumer segments, where legacy voice services and handset sales continue to decline.