AI could take over more jobs says BT CEO

British Telecom (BT) Group CEO Allison Kirkby believes artificial intelligence advances could rile up job cuts at the company.

The British Telecom company is already planning to slash 40,000 jobs and trim 3 billion pounds, roughly $4 billion in costs, by the end of the decade. Kirkby says that the figures may not fully capture AI’s potential impact.

She argued that if AI makes it possible to operate with fewer resources, they must respond accordingly to remain in the game. She commented, “Depending on what we learn from AI … there may be an opportunity for BT to be even smaller by the end of the decade.” 

Kirkby sold off their Italian and Irish business to focus on the UK

Before Kirkby took over, the company in 2023, under the then-CEO Phillip Jansen, declared it would reduce the workforce by about 55,000, including contractors, by 2030. Back then, Jansen asserted they would depend on a much leaner workforce and a lower cost base by the end of the 2020s.

Kirkby seems to hold a similar stance on working with a smaller workforce, having sold off their Irish wholesale and enterprise division to focus on their UK operations. The company also sold its Italian Business, British Telecom Italia, to telecoms provider Retelit.

BT Italia had about 350 corporate clients, earning roughly €160 million, about $217 million in 2024. However, the platform had legal trouble over possible document manipulation, which bruised investor confidence in the company’s non-UK business.

In May, the company also reorganized its international operations into a standalone unit and is reportedly open to selling the entire division, according to a source familiar with the matter. 

Some investors have supported Kirkby’s restructuring efforts, like Indian billionaire Sunil Mittal, who holds a 24.5% stake. 

Not to mention, British Telecom’s shares have also surged 65% since Kirkby became CEO.

BT weighs Openreach spin-off as fibre rollout nears milestone

Kirkby is considering separating Openreach, the company’s network infrastructure business, into an independent entity at some point in the future, though no final decision has been made. She argued that she did not feel the value of Openreach was reflected in the company’s share price, and if that continued, the company would have to consider other options. 

The firm will have time to look into what could be done to Openreach while the business upgrades its network to full fiber. After the upgrade, capital spending is expected to return to normal, and free cash flow should recover. 

Openreach expects to hit its 25 million home coverage target next year, after which the expansion will ease to 1 million homes per year—well below the current quarterly pace. Nonetheless, British Telecom aims to expand to 30 million homes by 2030.

According to New Street Research, Openreach is worth about £30 billion, about $40.7 billion—significantly higher than British Telecom’s current market capitalization of £18.5 billion, estimated at $25 billion. Despite the valuation gap, Kirkby claimed she would rather see the network’s value recognized in BT’s share price than pursue a spin-off. 

Meanwhile, British Telecom wants to take advantage of the hype and uncertainty around the recent partnership of Vodafone and Three to expand its retail platforms, EE and Plusnet. Kirkby believes that their merger presents an opportunity for them to market their brands. She added that she might have their retail brands operate in an alternative part of the UK where it isn’t cost-effective for Openreach to deploy its own fibre network.

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