BT Group: Potential of Artificial Intelligence Could Intensify Job Cuts

In light of the ongoing developments in the field of artificial intelligence, the ongoing job cuts at the British telecommunications company BT Group may possibly be even more extensive, as CEO Allison Kirkby stated to the Financial Times. The company is already planning to cut more than 40,000 jobs and reduce costs by £3 billion by the end of the decade. Kirkby emphasized that the current plans do not yet fully exploit the potential of artificial intelligence. "Depending on the insights we gain from AI, BT could shrink even further by the end of the decade," she was quoted. In 2023, BT, Britain’s leading broadband and mobile services provider, announced it would cut up to 55,000 jobs, including external contractors, by 2030. The then-CEO Philip Jansen had expressed the intention to base the company on a significantly reduced workforce and cost base. Another topic is the future of Openreach, BT's network infrastructure division, which may possibly be spun off. Kirkby stated that the value of Openreach is not adequately reflected in the share price, and if that does not change, BT would "absolutely need to consider other options." Last month, the company reported that strong demand for fiber broadband and cost savings of more than £900 million stabilized annual results and improved cash flow. The resilience of Openreach helped offset declines in revenue and profit in the business and consumer units, where the decline of traditional voice services and a drop in handset sales became noticeable.