The chief executive of BT Group has warned that the rollout of artificial intelligence across the business could result in further job cuts beyond the 55,000 roles the company has already earmarked for redundancy.
In an interview with the Financial Times over the weekend, Allison Kirkby, who took over from former chief executive Philip Jansen last year, said that while BT’s current cost-cutting strategy includes slashing 40,000 to 55,000 jobs by 2030, it “did not reflect the full potential of AI”.
“Depending on what we learn from AI … there may be an opportunity for BT to be even smaller by the end of the decade,” Kirkby said, suggesting the technology could unlock new levels of automation and operational efficiency.
The comments raise fresh concerns for BT’s workforce, which has already been bracing for steep reductions as part of a wider £3 billion cost-cutting plan aimed at making the telecoms giant a leaner, more agile business.
BT, the UK’s largest broadband and telecoms provider, first unveiled its job reduction strategy in 2023 under Jansen’s leadership. That announcement included plans to streamline operations and reduce reliance on contractors as the company completed its full-fibre broadband rollout.
Since assuming the top job, Kirkby has accelerated efforts to simplify BT’s operations, including the sale of its Italian business and the divestment of its Irish wholesale and enterprise unit. Last month, BT spun off its global division into a standalone business — though the company is reportedly open to offers for that part of its operations.
In her interview, Kirkby also raised fresh questions about the future of Openreach, BT’s network infrastructure arm, which is responsible for rolling out fibre broadband across the UK. She said the market is undervaluing BT’s share price and failing to reflect the true worth of Openreach.
“If that continues,” she warned, “we would absolutely have to look at options” — suggesting that a spin-off could be back on the table once the full-fibre rollout is complete. However, Kirkby added that her preference is for the BT Group share price to reflect Openreach’s value without the need for separation.
Meanwhile, BT is also reportedly weighing a potential acquisition of TalkTalk, its smaller broadband rival, which has around 3.2 million customers. TalkTalk has struggled since it was taken private by Toscafund in a £1.1 billion deal in 2021, which left it with £527 million in debt. Any deal would mark a significant consolidation in the UK broadband market and potentially raise regulatory scrutiny.
BT’s renewed focus on streamlining and automation comes amid broader shifts across the telecoms sector, where operators are increasingly turning to AI and digital tools to cut costs and modernise legacy systems. But for BT’s workforce, it signals a period of prolonged uncertainty as the full implications of AI integration unfold.
