AI to Drive Deeper Job Cuts, Warns BT Chief Kirkby

A media report published on 15 June stated that Allison Kirkby, the chief executive of BT Group, stated that developments in artificial intelligence may intensify the substantial layoffs already occurring at the British telecoms business.

BT's goals to eliminate over 40,000 jobs and cut 3 billion pounds ($4 billion) in expenses by the end of the decade "did not reflect the full potential of AI," Kirkby told a newspaper.

She said, "Depending on what we learn from AI... there may be an opportunity for BT to be even smaller by the end of the decade," according to a media site.

Up to 55,000 jobs, including those of contractors, would be eliminated by 2030, according to a 2023 statement from Britain's largest internet and mobile provider.

Phillip Jansen, the company's CEO at the time, stated that the organisation would operate with a substantially reduced cost base and a significantly smaller workforce by the conclusion of the 2020s.

Possible Future Spin-Off of Openreach

Kirkby, who succeeded Jansen a year ago, has also hinted at the potential of a future spin-off of Openreach, the company's network infrastructure division.

She stated that she did not believe the value of Openreach was accurately represented in the company's share price. If this were to persist, BT would be compelled to explore alternative options.

According to BT's email response to a media outlet, the corporation is not now actively investigating Openreach. Last month, BT said that its full-year earnings and cash flow had been strengthened by the robust demand for fibre broadband and over 900 million pounds in cost savings.

Openreach's resilience helped to offset revenue and profit decreases at its commercial and consumer segments, where handset sales and legacy voice services continued to decline.

Layoffs have Become a Common Scenario in 2025

With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.

Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing.

Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports. According to reports, AI-led restructuring and performance-based terminations are part of the corporations' goals to increase the effectiveness of their personnel.