BT, the telecoms giant, has announced plans to cut up to 55,000 jobs by the end of the decade, with a significant portion of the cuts expected to come from customer services as artificial intelligence (AI) is introduced. The CEO, Philip Jansen, expressed confidence in the capabilities of AI tools like ChatGPT to improve services without making customers feel like they are interacting with robots. BT aims to become a leaner business with a brighter future by leveraging new technologies, including AI. These job cuts are part of a broader trend in the industry, as Vodafone also plans to reduce its workforce by 11,000 jobs. The introduction of AI and other technologies, along with the completion of fibre network projects, is expected to drive efficiency and reduce labor costs for BT.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| BT to cut 55,000 jobs with up to a fifth replaced by AI | Job cuts and AI implementation | More efficient and AI-driven customer service | Cost-cutting and increased efficiency through AI |
| BT plans to have a “much smaller workforce” by the end of the 2020s | Workforce reduction | Leaner business and improved profitability | Cost-cutting and increased efficiency through AI |
| BT to complete building fibre networks in the UK, requiring fewer staff | Network completion and maintenance reduction | Reduced maintenance needs and improved network infrastructure | Technological advancements and reduced maintenance requirements |
| BT to use new tech including AI, resulting in job cuts | Implementation of new technology | Reduced reliance on human labor and increased efficiency | Technological advancements and increased efficiency through AI |
| BT reports a 12% drop in profits, leading to job cuts | Profit decline and cost-cutting | Streamlined operations and increased profitability | Financial considerations and cost-cutting measures |
| Vodafone also announces job cuts for general efficiency savings | General efficiency savings and cost-cutting | Increased profitability and streamlined operations | Financial considerations and cost-cutting measures |