BT, the UK’s largest broadband and mobile provider, has announced plans to cut up to a fifth of its workforce, equating to 40,000 to 55,000 jobs, by 2030.
The headcount reduction will include staff and contractors, with a focus on customer services, which will be replaced by technologies like artificial intelligence (AI).
BT To Fire A Fifth Of Its Workforce – Around 40,000 to 55,000 jobs, By 2030
CEO Philip Jansen expressed confidence in the capabilities of “generative AI” tools, such as ChatGPT, to drive further advancements in service quality. Jansen emphasized that the introduction of AI would make services faster and better without customers feeling like they are dealing with robots.
He assured that BT’s multi-channel approach, including online platforms and physical stores, would remain unchanged, providing customers with ample opportunities to interact with BT personnel.
The company’s decision to reduce its workforce is driven by multiple factors. BT is expanding its fiber network while moving away from copper, which will result in fewer staff needed for network construction and maintenance.
Additionally, advancements in technology, including AI, are expected to streamline customer service operations, reducing the number of personnel required in the future. This move follows Vodafone’s recent announcement to cut 11,000 jobs over the next three years.
Majority of Job Cuts Will Be In UK
The majority of BT’s job cuts will be in the UK, where the company currently employs around 80,000 people, compared to approximately 20,000 employees abroad. The company also has 30,000 contractors, mainly located outside the UK, many of whom will be affected by the reductions.
The Communications and Workers Union (CWU) commented that the BT announcement did not come as a surprise, considering the introduction of new technologies and the completion of the fiber infrastructure build. The CWU expressed its desire for BT to retain as many core employees as possible, with initial job cuts focused on sub-contractors and positions not being replaced as employees leave the company.
BT reported a 12% decline in profits, amounting to £1.7 billion, for the year ending in April. The company’s shares fell more than 7% as its financial results fell short of analysts’ expectations. Despite this, Jansen is optimistic about the future, envisioning a leaner business with a brighter outlook as BT embraces technological advancements and evolves its operations.
