BT chief eyes deeper job cuts as AI power grows

Opens door to Openreach spin-off

BT Group chief executive Allison Kirkby has signalled that the company could accelerate and deepen its already significant job cuts as AI continues to gain traction across the industry.

In an interview with the Financial Times, Kirkby said the company's current plan to eliminate more than 40,000 roles and deliver £3 billion in cost savings by 2030 "did not reflect the full potential of AI."

She suggested that the transformational capabilities of AI may enable BT to operate with an even leaner workforce.

"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 said, pointing to the potential for automation and data-driven efficiencies to reshape core operations.

Kirkby, who took the helm in February 2024, has intensified her predecessor Philip Jansen's radical workforce restructuring programme announced in 2023, which targeted a reduction of up to 55,000 jobs, more than 40% of BT's workforce.

Under her leadership, BT has also accelerated its geographic consolidation, exiting non-core international markets, including its Italian business and Irish wholesale and enterprise division.

In May 2025, BT formally carved out its international business into a standalone unit and is reportedly open to offers for the entire division, according to FT sources.

The restructuring effort has drawn praise from key investors, including Indian telecoms tycoon Sunil Mittal, who owns a 24.5% stake in BT and has been a vocal supporter of efforts to streamline and refocus the company.

At the heart of BT's evolving strategy is Openreach, the network infrastructure arm responsible for rolling out full-fibre broadband across the UK.

Kirkby hinted that BT may consider spinning off Openreach if the market continues to undervalue its contribution to the group's overall worth. Openreach is currently on track to reach 25 million homes with full fibre by next year, at which point its pace of expansion will slow from 1 million homes per quarter to 1 million per year.

BT aims to hit a 30 million home coverage target by 2030. Once the initial network build is completed, capital expenditure is expected to fall sharply, allowing free cash flow to rebound.

Industry analysts at New Street Research estimate Openreach's standalone value to be around £30 billion, far exceeding BT Group's current market capitalisation of £18.5 billion.

Despite that, Kirkby reiterated her preference to retain Openreach, so long as its value can be properly reflected in BT's stock.

Kirkby also acknowledged the shifting landscape of the UK mobile market following the £16.5 billion merger between Vodafone and Three, which has created a new dominant player. She sees this disruption as a strategic opportunity to strengthen BT's consumer-facing brands, EE and Plusnet.

"When competition goes through disruption . . . that is an opportunity for us to be able to promote the benefits of our brands and services versus others," she said.

Kirkby added that BT would also consider deploying its retail services over rival fibre networks, so-called "altnets," in parts of the UK where it would not be economical for Openreach to expand.

Turning to politics and policy, Kirkby expressed concern about the impact of higher business taxes in the wake of last week's Spending Review, which prompted predictions of further tax rises under Chancellor Rachel Reeves.

She estimated that increases to employers' national insurance contributions alone would cost BT over £100 million.