AI-driven job cuts are becoming a major concern in the global telecom industry. Recent remarks from BT Group’s chief executive suggest deeper workforce reductions may be on the way. The company is already planning to eliminate more than 40,000 roles by the end of this decade.
BT, the United Kingdom’s largest broadband and mobile provider, is using artificial intelligence to streamline operations. The company’s CEO, Allison Kirkby, believes AI could push workforce reductions even further. She recently told the Financial Times that current job cut estimates might not reflect AI’s full impact.
This shift matters to the U.S. telecom industry as well. American companies like Verizon and AT&T are exploring similar technologies. As BT uses AI to reduce costs and staff, U.S. firms may follow the same path.
Kirkby also hinted at new changes within BT’s business structure. She raised the possibility of spinning off Openreach, BT’s infrastructure unit. If market conditions remain the same, she said, selling or separating the unit could be considered.
These strategic moves show how telecom giants are adapting to a changing digital landscape. The effects of AI go beyond cost savings—they can reshape entire workforces. In 2023, BT announced plans to cut up to 55,000 jobs, including contractors. Kirkby replaced former CEO Philip Jansen, who set the original reduction target.
BT recently reported strong demand for its fiber broadband services. The company achieved over £900 million in annual cost savings. Still, revenue and profits dropped in its business and consumer divisions. Fewer voice service users and weaker handset sales contributed to the decline.
AI-driven job cuts may become more common across the industry. Experts warn that these shifts, while efficient, can have long-term effects on labor markets. In the U.S., telecom employees should pay close attention to these global signals.
As companies automate more tasks, roles that once seemed secure may be at risk. AI-driven job cuts could soon become a reality in the American workforce as well.
For more updates, visit DC Brief.
