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BT CEO Kirkby Signals AI Could Accelerate Job Cuts, Openreach Spin-Off Possible – Financial Times

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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.

Paramount to Cut 3.5% of U.S. Workforce Amid Industry Disruption

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Paramount Global is set to lay off 3.5% of its U.S. workforce as part of ongoing efforts to adjust to sweeping changes in the media industry, according to an internal memo reviewed by Reuters. The job cuts, announced to employees on Tuesday morning, may eventually extend to some international staff, the memo from the office of Paramount’s three co-CEOs indicated.

This new round of layoffs follows a previous 15% staff reduction announced in August 2024. The moves come as Paramount, like many traditional media companies, faces mounting challenges due to the rapid shift away from cable television toward streaming platforms such as Netflix. The company’s leadership cited the broader “generational disruption” affecting the industry as millions of consumers continue to abandon pay-TV subscriptions.

“We are taking the hard, but necessary steps to further streamline our organization starting this week,” co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins stated in the memo.

As of December 31, 2024, Paramount employed approximately 18,600 people globally. CNBC first reported the latest job cuts on Tuesday.

The layoffs occur as Paramount is in the midst of attempting a major corporate merger. The company has proposed an $8.4 billion deal with Skydance Media, led by billionaire David Ellison. However, regulatory approval for the merger remains pending. Complicating matters is a $10 billion lawsuit filed by former U.S. President Donald Trump against CBS News, part of Paramount Global, over allegations that a 2020 interview with then-vice president Kamala Harris was deceptively edited to her advantage.

Amazon Cuts Jobs in Books Division Amid Ongoing Restructuring Efforts

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Amazon has implemented another round of job cuts, this time targeting its books division, including its Goodreads review platform and Kindle operations. The company confirmed on Thursday that fewer than 100 employees were affected as part of an ongoing effort to enhance efficiency and better align with its evolving business strategy.

In a statement, an Amazon spokesperson explained, “As part of our ongoing work to make our teams and programs operate more efficiently, and to better align with our business roadmap, we’ve made the difficult decision to eliminate a small number of roles within the Books organization.”

These latest cuts are part of a broader trend of targeted layoffs at Amazon over the past year. The company has previously trimmed positions across several units, including its devices and services division, the Wondery podcast business, stores, and communications teams. The job reductions reflect CEO Andy Jassy’s broader initiative to streamline Amazon’s organizational structure, which has included efforts to minimize bureaucracy by reducing layers of management.

Despite the cuts, Amazon has shown modest workforce growth this year, adding approximately 4,000 jobs in the first quarter compared to the final quarter of 2024, according to a recent company disclosure. However, the overall pace of hiring remains cautious as Amazon continues to navigate a shifting economic environment and seeks to balance growth with cost control.

The job reductions were first reported by Business Insider and come as Amazon’s stock closed 0.3% higher on Thursday. However, shares remain down 5.6% year-to-date, reflecting broader market pressures and investor concerns about the tech sector’s growth trajectory.

Amazon’s books business, long a core component of its original e-commerce operations, remains significant but is facing shifting consumer habits and increased competition across both physical and digital reading platforms. The company’s ongoing restructuring highlights its attempt to adapt to changing market dynamics while optimizing operations across all business units.