BT Slashes 55,000 Jobs as AI Accelerates Workforce Reduction
British Telecom (BT) has unveiled sweeping workforce reductions, targeting up to 55,000 job cuts by the end of the decade. The telecommunications giant's CEO Allison Kirkby revealed that artificial intelligence adoption may accelerate these layoffs beyond initial projections.
The company had previously announced plans to eliminate between 40,000 and 55,000 positions by 2030 as part of business streamlining efforts. However, Kirkby acknowledged these estimates didn't fully account for AI's transformative potential. "As our understanding of artificial intelligence deepens, BT will likely become significantly leaner by 2030," she stated.
BT initially aimed for £3 billion in cost savings through workforce reductions. Kirkby now believes AI implementation could unlock additional financial benefits. The company has already taken aggressive steps to reshape its operations under her leadership, including divesting its Italian business and Irish wholesale/enterprise divisions.
As the UK's largest broadband provider, BT's restructuring extends beyond direct employees to contract workers. Former CEO Philip Jansen had outlined ambitious workforce reduction targets before Kirkby took the helm in early 2025.
The company recently reorganized its international operations into a standalone unit, signaling potential divestment. Kirkby expressed frustration that BT's stock price fails to properly value its Openreach broadband infrastructure business. "If this valuation gap persists," she warned, "we must absolutely consider alternative strategies."
BT plans to reevaluate Openreach's corporate structure after completing nationwide fiber optic upgrades. While a spin-off remains possible, Kirkby prefers market recognition of Openreach's true worth without structural changes.
In related developments, BT is reportedly exploring an acquisition of rival TalkTalk. The debt-laden competitor serves about 3.2 million customers but has struggled since its 2021 privatization by Toscafund, carrying £527 million in obligations.
Key Points
- BT plans workforce reductions reaching 55,000 employees by 2030
- AI adoption may accelerate job cuts beyond current projections
- Company restructuring includes international unit separation and potential asset sales
- Openreach valuation concerns prompt strategic review
- Acquisition talks underway for competitor TalkTalk