BT Boss Expects AI to Worsen Job Cuts: Report

BT Group's boss, Philip Jansen, expects AI to deepen job cuts, according to the Financial Times. The telecommunications company has already undergone significant restructuring and layoffs under previous CEO Philip Kirkby. The use of AI is expected to further automate processes, leading to more job losses. BT has organized its business around three sectors: telecommunications services, services, and network establishment, with the majority of sales coming from the UK.

BT Group Chief Executive Allison Kirkby has indicated that advances in artificial intelligence (AI) could lead to further significant job cuts at the British telecoms company, according to the Financial Times [1]. This revelation comes amidst a backdrop of ongoing restructuring and layoffs under Kirkby's leadership.

BT Group has already announced plans to reduce its workforce by more than 40,000 jobs and strip out £3 billion ($4 billion) of costs by the end of the decade [1]. Kirkby stated that the company's current plans may not fully reflect the potential impact of AI, suggesting that the use of AI could result in even more job losses by 2030.

The telecommunications company operates in three main sectors: telecommunications services, services, and network establishment. The majority of its sales come from the UK market. BT Group has been facing challenges due to the decline of legacy voice services and handset sales, but recent improvements in fibre broadband and cost savings have helped shore up its financial performance [1].

J.P. Morgan has recently added BT Group to its Analyst Focus List, citing improving earnings, potential industry consolidation, and increasing shareholder returns as key drivers [2]. The brokerage maintains an "overweight" rating on BT Group and has set a price target of 286p by March 2027, representing a 63% upside from the current share price of 176p.

BT Group's free cash flow has been constrained at around £1.5 billion annually due to high capital expenditures tied to its fibre rollout. However, J.P. Morgan projects a recovery, with normalized equity free cash flow expected to reach £2 billion by March 2027 and potentially £3.5 billion by the end of the decade. The brokerage estimates that BT could return up to £10 billion to shareholders over the next six years, roughly 60% of its market capitalization [2].

The UK government has pledged to invest £1 billion ($1.36bn) in scaling up the nation's AI compute power, aiming to double its size by 2030 [4]. This investment is part of a broader strategy to improve public services and position the UK as an AI maker rather than just an AI taker.

References:

[1] Reuters. (2023). BT Group Chief Executive Allison Kirkby eyes deeper job cuts. Finance Yahoo. Retrieved from https://finance.yahoo.com/news/bt-ceo-eyes-deeper-job-055332745.html

[2] Investing.com. (2023). J.P. Morgan adds BT Group to its Analyst Focus List. Retrieved from https://www.investing.com/news/stock-market-news/jp-morgan-adds-bt-group-to-its-analyst-focus-list-4090869

[4] Data Center Dynamics. (2025). UK pledges £1 billion AI compute investment. Retrieved from https://www.datacenterdynamics.com/en/news/uk-pledges-1-billion-ai-compute-investment-nscale-plans-to-deploy-10000-nvidia-gpus/