Artificial intelligence (AI) could enable BT Group to go beyond its already substantial job cut plans, the company’s Chief Executive Officer Allison Kirkby has said, raising the possibility of a leaner organisation as the decade progresses. Speaking to the Financial Times in an interview published on Sunday, Kirkby indicated that BT's current strategy might underestimate the transformative impact of emerging technologies on the business.

Kirkby told the FT that the company's previously announced goal to slash more than 40,000 roles and save £3 billion by 2030 “did not reflect the full potential of AI.” She added: “Depending on what we learn from AI... there may be an opportunity for BT to be even smaller by the end of the decade.” 

This bold projection follows BT’s 2023 announcement that it planned to eliminate up to 55,000 roles—including contractors—by the end of the decade. At the time, then-CEO Philip Jansen had explained that the group would operate with a much leaner workforce and drastically reduced costs. Kirkby succeeded Jansen a year ago and is steering the company through an era of digital transformation.

BT is the UK’s largest broadband and mobile network operator. Like many global telecom giants, it is grappling with the challenge of modernising legacy infrastructure while investing heavily in next-generation fibre and 5G networks. AI and automation are being deployed across its operations to streamline customer service, optimise network performance, and manage back-end processes.

Kirkby’s comments underscore how disruptive technologies are not just changing how services are delivered, but also reshaping the workforce needed to support them. The potential for deeper cuts could add to concerns among unions and employees about the future of jobs in the sector. However, BT’s leadership maintains that embracing AI is essential to remaining competitive in a fast-evolving digital landscape.

In a further strategic development, Kirkby also told the FT that she was open to the idea of spinning off Openreach—BT’s semi-autonomous network infrastructure arm—if its value continued to be underrepresented in the group’s share price. “We would absolutely have to look at options,” she said, although she stressed this was not an immediate priority.

Openreach has been one of BT’s more resilient units, recently helping to offset weaker performance elsewhere in the group. Last month, BT reported that strong demand for fibre broadband and more than £900 million in cost savings had bolstered full-year earnings and improved cash flow. While Openreach posted relatively stable numbers, BT’s business and consumer divisions suffered declines in revenue and profit due to falling handset sales and the continued decline of traditional voice services.

Responding to the Financial Times interview, BT told Reuters in an emailed statement that it is not actively pursuing changes to Openreach at present. The company did not provide additional comments on Kirkby’s remarks.

The potential spin-off of Openreach could unlock significant value for shareholders, but it would also involve navigating complex regulatory and operational challenges. Analysts have long debated the merits of separating BT’s infrastructure business from its retail operations, arguing it could sharpen the strategic focus of both.

As the company looks to the future, Kirkby’s vision points toward a BT that is not just smaller in size but smarter in function—leaner, more agile, and powered by AI. Yet, this transition comes with real consequences for thousands of workers whose roles may become obsolete in the name of innovation.

With AI’s influence deepening, BT’s transformation journey is likely to be both technologically bold and socially complex, as it balances efficiency with accountability.