BT Group Chief Executive Allison Kirkby has hinted that the company’s ongoing cost-cutting drive and job reductions could go deeper than initially planned, citing the rising potential of artificial intelligence (AI). The development was reported by the Financial Times on Sunday.
Kirkby said the company’s plan to eliminate more than 40,000 roles and cut costs by £3 billion ($4 billion) by 2030 “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,” she told FT.
In 2023, BT had announced its intention to reduce its workforce by up to 55,000 roles, including contractors, by the end of the decade. Then-CEO Philip Jansen said the telecoms giant was looking toward a future that involved a leaner workforce and significantly lower operating costs.
Kirkby, who succeeded Jansen in 2024, also acknowledged that a spin-off of Openreach — BT’s broadband infrastructure arm — could be considered if the division’s value continues to go unrecognized by the market.
“If the value of Openreach remains unappreciated in BT’s share price, we would absolutely have to look at options,” she said.
However, in response to a Reuters inquiry, BT clarified that it is not actively exploring an Openreach spin-off at this time, and declined to elaborate on Kirkby’s remarks.
The company reported last month that strong demand for fibre broadband and £900 million in cost savings had helped support full-year earnings and increase cash flow. Despite these gains, BT continues to face pressure in its business and consumer units, where declines in legacy voice services and handset sales have weighed on revenues.
