British Telecom CEO Allison Kirkby highlighted that the advancements in artificial intelligence may lead to significant job cuts within the company.
Impact of AI on BT Job Cuts
Currently, British Telecom plans to cut 40,000 jobs by the end of the decade and reduce costs by £3 billion, roughly $4 billion. Kirkby believes the figures may not fully capture AI’s potential impact. She commented, "Depending on what we learn from AI, there may be an opportunity for BT to be even smaller by the end of the decade."
Restructuring Strategy
Under Kirkby’s leadership, BT has sold its Irish and Italian business divisions to focus on its UK operations. In 2023, Kirkby's predecessor, Phillip Jansen, already announced plans to reduce the workforce by about 55,000, including contractors, aiming for a much leaner workforce.
Prospects for Openreach Business
Kirkby is considering spinning off Openreach, the company's network infrastructure business, into an independent entity, although no final decision has been made. She claims the value of Openreach is not reflected in British Telecom's market capitalization and if that continues, the company may have to consider other options.
The changes and cuts being discussed at British Telecom, alongside strategic sales and market reflections, could significantly impact the company's future.
