BT Group may undergo even deeper job reductions than previously announced, driven by rapid advancements in artificial intelligence (AI), according to Chief Executive Allison Kirkby in an interview with the Financial Times.
The UK’s largest telecom provider had already announced a bold plan to cut up to 55,000 roles including contractors by 2030. But Kirkby now says that figure may underestimate the full cost-saving potential of AI technologies being adopted across the company.
AI Set to Reshape Operations at Scale
As Kirkby noted, generative and automation-focused AI tools are increasingly infiltrating legacy industries and impacting workforce strategy. In BT’s case, enhanced efficiencies in network management processes, customer service, and internal systems are benchmarks where AI could potentially create more efficiencies such that they further lessen the already minimized reliance on human labor.
The company is currently in the midst of a £3 billion ($4 billion) cost-cutting strategy, and the company’s leadership appears to believe AI will be a key component in unlocking savings to be an organizational practice..
Openreach Spin-Off Still in Play
Beyond job cuts, Kirkby also reopened the possibility of spinning off Openreach, BT’s lucrative broadband infrastructure arm. She noted that BT’s market valuation fails to reflect the value of Openreach, and if that disconnect continues, “we would have to look at options.”
Openreach has been a critical growth engine, especially with surging demand for full-fibre broadband across the UK. Its performance helped BT offset revenue declines in other divisions, including business and consumer units where legacy services and handset sales have weakened.
Cost Cuts Begin to Show Results
BT’s latest earnings report showed strong full-year cash flow, supported by over £900 million in cost savings. This resilience was largely attributed to Openreach, which counterbalanced revenue pressures from declining voice services and device sales in consumer markets.
Kirkby’s long-term vision appears to hinge on a leaner, AI-augmented workforce, optimized infrastructure, and possibly a restructured corporate model centered around Openreach.
Conclusion
As AI continues to disrupt traditional telecom operations, BT Group is positioning itself for a radical transformation one that may lead to fewer employees, lower costs, and possibly a spin-off of its most valuable asset. With Kirkby at the helm, the next five years could define BT’s future as both a technological pioneer and a streamlined digital operator.
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