BT Group Announces 40,000 Job Cuts Amid AI Development

BT Group is planning to cut 40,000 jobs as part of its transformation into a digital business. The UK-based telecommunications company is investing in AI development and expects to complete the job cuts by 2025. The company will focus on its consumer, wholesale, and business units, and will continue to invest in its technology and network infrastructure. BT Group's CEO, Philip Jansen, said the job cuts will help the company become more efficient and better positioned for the future.

BT Group, the UK's largest telecommunications provider, is planning to cut 40,000 jobs by 2025 as part of its ongoing transformation into a digital business. The company is investing heavily in artificial intelligence (AI) development and expects these advancements to further deepen the job cuts [1]. BT Group's CEO, Allison Kirkby, has stated that the current job cut plans do not fully reflect the potential of AI, suggesting that the company may become even smaller by the end of the decade [2].

BT Group's transformation strategy focuses on its consumer, wholesale, and business units. The company aims to enhance its technology and network infrastructure while maintaining a strong cash flow. Last month, BT reported that strong demand for fiber broadband and cost savings of over £900 million had helped to bolster its full-year earnings and cash flow [3]. The resilience of Openreach, BT's network infrastructure business, offset declines in revenue and profits in its business and consumer units, where legacy voice services continued to wane and handset sales fell [3].

J.P. Morgan has added BT Group to its Analyst Focus List, citing improving earnings, potential industry consolidation, and increasing shareholder returns as key drivers [4]. The brokerage maintains an "overweight" rating on BT and has set a price target of 286p by March 2027, representing a 63% upside from the current share price of 176p [4]. J.P. Morgan projects a recovery in BT's normalized equity free cash flow, which could reach £2 billion by March 2027 and potentially £3.5 billion by the end of the decade [4].

BT Group's CEO, Allison Kirkby, has also opened the door to a possible future spin-off of Openreach, the company's network infrastructure business. She noted that the value of Openreach is not fully reflected in the company's share price and that BT would have to consider options if this persisted [2]. BT Group is currently upgrading its network to full fiber, and Kirkby stated that she will reconsider the spin-off of Openreach after this upgrade is complete [5].

References:
[1] https://www.marketscreener.com/quote/stock/BT-GROUP-PLC-4003616/news/BT-boss-Kirkby-expects-AI-to-deepen-job-cuts-FT-reports-50244434/
[2] https://finance.yahoo.com/news/bt-ceo-eyes-deeper-job-055332745.html
[3] https://www.investing.com/news/stock-market-news/jp-morgan-adds-bt-group-to-its-analyst-focus-list-4090869
[4] https://www.bloomberg.com/news/articles/2025-06-15/bt-ceo-says-ai-advances-could-deepen-job-cuts-ft
[5] https://seekingalpha.com/article/4793628-comparing-restructuring-strategies-at-bt-group-and-vodafone