British Telecom (BT) recently announced a large-scale layoff plan, expecting to cut up to 55,000 employees by the end of this decade. In an interview, its CEO, Allison Kirkby, stated that with the rapid development of artificial intelligence technology, there may be more layoffs in the future.
Two years ago, BT had announced a plan to reduce 40,000 to 55,000 positions by 2030, aiming for "streamlining" of its business. However, Kirkby believes that this plan did not fully consider the potential of artificial intelligence. She pointed out: "As we gain a deeper understanding of artificial intelligence, BT is expected to become smaller by the end of this decade." The company's previous goal was to cut costs by £3 billion through layoffs, but she believes that the application of AI could provide more opportunities for cost savings.
As the largest broadband service provider in the UK, BT decided to downsize in 2023, which includes not only layoffs but also reducing the number of contract workers. Former CEO Philip Jansen once stated that BT aims to significantly reduce its workforce and costs by the end of this decade. After Kirkby took over, she actively promoted business streamlining, including selling off its Italian business and the wholesale and enterprise departments in Ireland, while focusing more on improving domestic UK operations.
Last month, BT split its international business into an independent department and expressed the possibility of considering selling it. Kirkby believes that the value of BT's broadband network business, Openreach, is not adequately reflected in its stock price. If this continues, she said BT "absolutely needs to consider other options." She added that once the company completes the full fiber optic upgrade of its network, it will reassess whether to split the business. However, she hopes BT's stock price can reflect the true value of Openreach rather than achieving it through a split.
In addition, recent reports indicate that BT is considering acquiring a competitor telecommunications and broadband company, TalkTalk. TalkTalk has approximately 3.2 million customers, but since being privatized by London investment firm Toscafund in 2021, it has been burdened with £527 million in debt, and its operational situation has faced challenges.
Key Points:
📉 BT plans to lay off up to 55,000 employees by the end of this decade.
🤖 The development of AI technology may further drive the company's layoff process.
📊 BT is considering acquiring a competitor, TalkTalk, to actively integrate its business.
