BritishTelecom(BT)recentlyannouncedalarge-scalelayoffplan,expectingtocutupto55,000employeesbytheendofthisdecade.Inaninterview,itsCEO,AllisonKirkby,statedthatwiththerapiddevelopmentofartificialintelligencetechnology,theremaybemorelayoffsinthefuture.
Twoyearsago,BThadannouncedaplantoreduce40,000to55,000positionsby2030,aimingfor"streamlining"ofitsbusiness.However,Kirkbybelievesthatthisplandidnotfullyconsiderthepotentialofartificialintelligence.Shepointedout:"Aswegainadeeperunderstandingofartificialintelligence,BTisexpectedtobecomesmallerbytheendofthisdecade."Thecompany'spreviousgoalwastocutcostsby£3billionthroughlayoffs,butshebelievesthattheapplicationofAIcouldprovidemoreopportunitiesforcostsavings.
AsthelargestbroadbandserviceproviderintheUK,BTdecidedtodownsizein2023,whichincludesnotonlylayoffsbutalsoreducingthenumberofcontractworkers.FormerCEOPhilipJansenoncestatedthatBTaimstosignificantlyreduceitsworkforceandcostsbytheendofthisdecade.AfterKirkbytookover,sheactivelypromotedbusinessstreamlining,includingsellingoffitsItalianbusinessandthewholesaleandenterprisedepartmentsinIreland,whilefocusingmoreonimprovingdomesticUKoperations.
Lastmonth,BTsplititsinternationalbusinessintoanindependentdepartmentandexpressedthepossibilityofconsideringsellingit.KirkbybelievesthatthevalueofBT'sbroadbandnetworkbusiness,Openreach,isnotadequatelyreflectedinitsstockprice.Ifthiscontinues,shesaidBT"absolutelyneedstoconsiderotheroptions."Sheaddedthatoncethecompanycompletesthefullfiberopticupgradeofitsnetwork,itwillreassesswhethertosplitthebusiness.However,shehopesBT'sstockpricecanreflectthetruevalueofOpenreachratherthanachievingitthroughasplit.
Inaddition,recentreportsindicatethatBTisconsideringacquiringacompetitortelecommunicationsandbroadbandcompany,TalkTalk.TalkTalkhasapproximately3.2millioncustomers,butsincebeingprivatizedbyLondoninvestmentfirmToscafundin2021,ithasbeenburdenedwith£527millionindebt,anditsoperationalsituationhasfacedchallenges.
KeyPoints:
📉BTplanstolayoffupto55,000employeesbytheendofthisdecade.
🤖ThedevelopmentofAItechnologymayfurtherdrivethecompany'slayoffprocess.
📊BTisconsideringacquiringacompetitor,TalkTalk,toactivelyintegrateitsbusiness.
