British telecommunications giant BT Group is preparing for a more dramatic workforce reduction than previously announced, as Chief Executive Allison Kirkby revealed that artificial intelligence could accelerate and deepen the company's ongoing job cuts.
In an interview with the Financial Times published Sunday, Kirkby stated that BT's existing plans to eliminate more than 40,000 jobs and reduce costs by £3 billion ($4 billion) by 2030 "did not reflect the full potential of AI." She suggested that depending on what the company learns from AI implementation, "there may be an opportunity for BT to be even smaller by the end of the decade."
The telecommunications industry has been at the forefront of AI adoption, with a 2025 industry survey indicating that 84% of telecom companies report AI is helping increase annual revenue while 77% say it has reduced operating costs. However, this technological revolution comes with significant workforce implications. According to recent research, approximately 45% of telecom jobs could be at risk of automation by 2030.
BT Group had previously announced plans in May 2023 to cut up to 55,000 positions, including contractors, by the decade's end. This initial reduction strategy was developed under Kirkby's predecessor, Philip Jansen, who indicated the company would rely on a much smaller workforce as it completed its fiber rollout and adapted to new technologies.
Kirkby, who took over as CEO about a year ago, has been focusing on enhancing operational efficiency. The company reported last month that strong demand for fiber broadband and more than £900 million in cost savings had helped strengthen its full-year earnings and boost cash flow.
Beyond workforce reductions, Kirkby also hinted at potential structural changes, suggesting a future spin-off of Openreach, BT's network infrastructure division, remains a possibility if she continues to believe its value isn't adequately reflected in BT's share price.