BT Chief Warns AI Could Lead to Increased Job Reductions • The Register

UK telecom giant BT plans to slash up to 55,000 jobs by 2030, about 42% of its workforce, as part of a strategy to enhance profit margins. CEO Allison Kirkby indicated that the potential impact of AI on staffing may allow for even deeper cuts, particularly in customer services and network engineering roles. BT’s workforce reductions could see around 10,000 cuts in customer service due to automation. Kirkby’s comments reflect a belief that recent advancements in AI can enable BT to operate with fewer resources. However, experiences from other companies like Klarna and Duolingo highlight the risks of prioritizing cost-cutting over service quality, leading to customer dissatisfaction and subsequent rehiring of staff. Additionally, Kirkby expressed openness to potentially selling off parts of BT, including its infrastructure division, Openreach, if its value doesn’t align with the company’s share price. Amid these changes, BT also faces internal discontent over inadequate pay raises for managerial staff.

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