AI could lead to more job openings in BT, CEO | bt

BT's chief executive said advances in artificial intelligence could potentially book deeper employment cuts at the FTSE 100 Telecoms Company.

Two years ago, the company said that it would be 40,000-55,000 jobs would be x, as it was established to become a “lean” business by the end of the decade.

However, in a weekend interview, its CEO Allison Kirkby said the plan, which includes removing the £3 billion of expenses, “didn't reflect the full potential of AI.”

“Depending on what we've learned from AI, there may be opportunities for BT to be even smaller by the end of the decade,” Kirkby said in an interview with the Financial Times.

BT, the country's largest broadband provider, has planned in 2023 to reduce the size of its workforce, including contractors, by 2030. Philip Jansen, then-Chief Executive Officer, said the company could rely on a much smaller workforce and cost base by the end of the decade.

Kirkby, who took over from Janssen last year, is calling for the company to streamline its Italian business and Ireland's wholesale and enterprise units, and is focusing more on improvements in the UK.

Last month, BT spun international business into another division, but according to FT, which cited people familiar with the issue, BT reportedly accepts offers to this area of ​​business.

Kirkby also said it does not believe that BT's broadband network business value is reflected in its stock price. If this continues, BT “must consider the options.” “Time to reconsider” whether to spin off your business or not, she said, will occur once you've completed upgrading your network to full fiber.

However, Kirkby said her preference is that BT stock prices reflect the value of open reach, rather than spin-off it.

Last week it was revealed that BT is squeezing a potential acquisition of telecom and broadband company TalkTalk. Its small rival has around 3.2 million customers, but has struggled since London-based investment company Toscafund became private in 2021 with a £11 billion deal, which added £527 million in debt.