- BT could save £ 3 billion by cutting up to 55,000 workers, AI could end even more contracts
- If stock prices do not rise, BT may have to turn up in Openreach
- Group revenue had fallen by 2% year-over-year
BT CEO Allison Kirkby has stated that the increasing adoption of artificial intelligence can lead to even deeper cuts beyond the current plans to trim the company’s workforce.
Kirkby confirmed plans hoping to save £ 3 billion in 2030 to cut 40,000-55,000 jobs at the end of the decade.
In an interview with Financial timesKirkby said: “Depending on what we learn from AI … there may be an opportunity for BT to be even less at the end of the decade.”
BT CEO accuses AI of additional job cuts
Kirkby took over BT in 2024 and replaced former CEO Philip Jansen and has led several savings exercises, including selling non-core assets as the company’s Italian and Irish units.
The Ft Also noted that BT had spun its international business last month and quoted sources that were familiar with the case, which suggested it could be open to it.
However, 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 underestimation continues, BT could consider spinning Openreach after the fiber rolling is completed, but Kirkby said she prefers the stock price improving rather than having to resort to another spinoff.
When he talked about BT’s recent full financial year, which ended on March 31, Kirkby said the company had realized “over £ 900 million of annual cost savings.” She blamed “lower international sales and handsets” on 2% dip in revenue to £ 20.4 billion.
BT’s range everywhere in the UK could be getting even stronger with The Guardian revealing that the company could have entered into initial discussions to buy talk talk, a smaller broadband provider who has fought financially.
However, such a acquisition, along with BT’s ownership of mobile network provider EE Spell, could greatly dominance over the British networks that potentially trigger an antitrust study.
The recently completed merger of three and Vodafone was subject to an in -depth study before eventually approved by Britain Competition and Markets Authority (CMA).
