BT warns AI could drive deeper job cuts as Openreach spin-off remains possible
CEO Allison Kirkby hints at deeper staff reductions driven by AI and suggests BT may consider spinning off Openreach if undervaluation persists.
BT Group’s chief executive, Allison Kirkby, has suggested that AI could lead to even greater job reductions than previously planned.
The telecoms giant had already announced up to 55,000 job cuts by 2030, including contractors. However, Kirkby told the Financial Times that the current target may not fully account for AI’s potential, implying the company’s workforce could shrink even further before the end of the decade.
Kirkby, who took over from Philip Jansen last year, also indicated BT might consider spinning off its Openreach division if the network business continues to be undervalued by markets.
She said the company would have to explore other options if Openreach’s worth remains unrecognised in the share price. BT later told Reuters it was not actively considering changes to Openreach at present.
BT recently reported strong fibre broadband demand and over £900 million in cost savings, which helped stabilise annual earnings. Growth at Openreach offset losses in its consumer and business segments, where demand for legacy voice services and handsets has continued to fall.
The company remains focused on reducing costs by £3 billion by the decade’s end.
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