AI-Driven Job Cuts Loom at BT as CEO Signals Workforce Reductions

The AI Effect: BT’s Workforce Woes

In a candid reflection on the future of BT Group, CEO Allison Kirkby has pointed out that the company’s use of artificial intelligence could lead to more job cuts than initially planned, raising eyebrows and alarms alike. Set your alarms for 2030, folks, because Kirkby plans to trim the workforce by a staggering 40,000 to 55,000 employees (that’s nearly the population of Monaco) in a bid to shave £3 billion off costs.

Kirkby, making waves since she took over the pilot seat in 2024, told the Financial Times, "Depending on what we learn from AI... there may be an opportunity for BT to be even smaller." Translation: If AI keeps showing off its cool tricks, some jobs could be shown the door earlier than we’d like.

Shareholders, Assemble!

Here’s the scoop: BT shares are acing the invisibility challenge at £186.45 per share. Listed as "meh" in CEO speak, this undervaluation has raised talks of spinning off Openreach, BT’s beloved broadband baby—only if the value doesn’t spring back to life. It's like when your neighbor considers selling their prized classic car, but you kind of hope they won't.

However, Openreach isn’t just any broadband provider; it’s the backbone of UK's internet capabilities. A spin-off, as suggested, would be the last resort if stock performance doesn’t spike post-fiber rollout.

Speaking of numbers, BT has realized over £900m in annual cost savings, even as revenue dipped 2% to £20.4 billion. The culprit? Lackluster international sales and handset hype. Go figure!

Monopoly or Masterpiece?

Adding more players to its turf game, BT has reportedly held preliminary chats to potentially acquire TalkTalk, a smaller broadband player that’s finding financial waters a tad choppy lately. This potential buyout, coupled with BT's ownership of EE, could steer the company into choppy waters of antitrust challenges.

We all saw the intense scrutiny Vodafone and Three merger faced under the UK’s Competition and Markets Authority (CMA) before being stamped with approval. Similarly, if BT plans on making the UK network their Monopoly board, it's bound to provoke a thorough tug of war with regulators.

Whether BT goes for the full internet domination plan or keeps its chess pieces in check, the only guarantee is that it’ll be one heck of a ride through cost-savings and AI automation.

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