- BT could save £3 billion by cutting up to 55,000 workers, AI could end even more contracts
- If share prices don’t rise, BT might have to spin off Openreach
- Group revenue was down 2% year-over-year
BT CEO Allison Kirkby has indicated the increasing adoption of artificial intelligence could lead to even deeper cuts beyond current plans to trim the company’s workforce.
Kirkby confirmed plans, which are hoped to save £3 billion by 2030, to cut 40,000-55,000 jobs by the end of the decade.
In an interview with the Financial Times, Kirkby stated: “Depending on what we learn from AI… there may be an opportunity for BT to be even smaller by the end of the decade.”
BT CEO blames AI for further job cuts
Kirkby took over BT in 2024, replacing former CEO Philip Jansen, and has led several saving exercises, including selling off non-core assets like the company’s Italian and Irish units.
The FT also noted that BT had spun off its international business last month, citing sources familiar with the matter, suggesting that it could be open to offers on it.
However, the CEO believes that BT’s current share price (£186.45) does not reflect the true value of Openreach – its broadband network arm. If this perceived undervaluation continues, BT could consider spinning off Openreach after the fibre rollout is complete, however Kirkby said she would prefer the share price to improve rather than having to resort to yet another spinoff.
Speaking about BT’s latest full fiscal year, which ended on March 31, Kirkby said the company had realized “over £900m of annualized cost savings.” She blamed “lower international sales and handsets” on the 2% dip in revenue, to £20.4 billion.
BT’s reach across the UK could be about to get even stronger, with The Guardian revealing that the company could have entered initial discussions to buy out TalkTalk, a smaller broadband provider that has struggled financially.
However, such an acquisition, together with BT’s ownership of mobile network provider EE, could spell out great domination over UK networks, potentially sparking an antitrust investigation.
The recently-completed merger of Three and Vodafone was subject to an in-depth investigation before eventually approved by the UK’s Competition and Markets Authority (CMA).
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