BT CEO warns AI may exacerbate layoffs, 55,000-person plan may expand

BT CEO Alison Kirkby warned that advances in artificial intelligence technology could lead to further job cuts on top of the company's original layoff plan. Previously, the company had announced in 2023 that it would lay off up to 55,000 people, or 20% of its total workforce, by the end of 2030, aiming to cut £3 billion in costs through business streamlining. However, Kirkby recently pointed out that the plan did not fully assess the potential of AI, saying that "BT is expected to become smaller by the end of this decade as we gain a deeper understanding of AI." In fact, up to one-fifth of the company's original layoff plan will be replaced by AI in customer service and other functions, but the application of new technologies may bring additional cost savings. After Kirkby took over from former CEO Philip Janssen last year, he accelerated the strategic transformation, including the sale of the Italian business and the Irish division, and shifted the focus to the UK domestic market. At the same time, BT has split its international business into independent departments and may consider selling it to optimize its asset structure. In addition, Kirkby emphasized that the value of its broadband network business Openreach is underestimated by the market, and if the stock price continues to fail to reflect the true value, the company will "consider other options," including potential splits. She prefers to solve the problem through internal optimization rather than selling, especially after the full fiber network upgrade is completed. It is worth noting that BT is evaluating the acquisition of debt-ridden competitor TalkTalk, which has about 3.2 million customers, which may further reshape the industry landscape. Overall, the wave of AI-driven automation is forcing the telecom giant to accelerate restructuring to meet cost and efficiency challenges.