BT, the UK’s leading broadband and mobile provider, has unveiled plans to reduce its workforce by up to 55,000 jobs by the end of the 2030s in an effort to streamline operations and cut costs.
The majority of the job cuts will occur in the UK, with a fifth of the reductions affecting customer services as the company integrates artificial intelligence and other technologies.
The downsizing will impact both employees and contractors and is driven by BT’s goal of leveraging new technologies, including generative AI tools like ChatGPT, to enhance service efficiency. BT aims to provide faster and more seamless services without compromising the human touch and maintains that customers will continue to have ample opportunities to interact with BT staff through various channels.
The company’s continued fibre network development and the use of more efficient technologies, such as artificial intelligence, will lessen the need for a sizable workforce in network building and maintenance. The decision to scale back comes after Vodafone made a comparable decision, announcing intentions to cut 11,000 positions over the next three years. BT expects to become a leaner, more agile company with a bright future despite the employee decrease. The company is still committed to its expansion goals.
According to James Barford, head of telecoms research at Enders Analysis, the job cuts announced by BT primarily focus on reducing the workforce required for network construction, whereas Vodafone’s cuts are more centred around general efficiency improvements. Barford noted that these plans were already in motion, with cost savings initially described in financial terms rather than through headcount reduction.
Barford suggests that the companies may be emphasising job cuts now to assure sceptical investors of their commitment to achieving the projected savings. By highlighting the reduction in workforce, the firms aim to demonstrate their determination to streamline operations and achieve cost efficiencies.