IT will use artificial intelligence to replace 55,000 jobs
BT Group, the UK’s largest broadband and mobile service provider, plans to cut 55,000 jobs by 2030 as it completes fiber rollout and adapts to AI.
UK-based telecommunications company BT is working on a transformation plan to create a national fiber network under the leadership of chief Philip Jansen, along with high-speed 5G mobile services.
The former state monopoly posted the first increase in six years in its tentative revenue and core earnings, which it announced Thursday in late March.
Between 40K and 55K layoffs
BT Group CEO Philip Jansen said that after completing the fiber rollout, digitizing its operation and embracing AI, by the end of the 2020s, IT will need less manpower and a significantly reduced cost base.
Explaining that he plans to reduce the total number of employees from 130,000 to 75 to 90,000 by 2030 at the latest, Jansen said BT’s ongoing layoffs will accelerate as it completes its fiber infrastructure and shuts down 3G.
Jansen told reporters that layoffs will take 5-7 years.
“THE ACTURES ARE NOT A SURPRISE”
The Communications Workers Union (CWU) said the layoffs were “not a surprise” given the changes to be made to infrastructure and technology, while talks between TI and the union were necessary for the process.
The union said TI should directly keep the jobs and aim to lay off contractors.
BT’s rival Vodafone also announced on Tuesday that it would cut 11,000 jobs worldwide to try to regain competitiveness.
ARTIFICIAL INTELLIGENCE WILL REPLACE 10 THOUSAND ENGINEERS
Jansen said about 10,000 fewer network engineers will be needed for digital networks, while technologies like automation and artificial intelligence will replace 10,000 people.
Saying that there are “great opportunities” to use artificial intelligence, Jansen said productive models of artificial intelligence are a development that rivals the invention of smartphones.
BT has announced that it will use AI to provide better customer service based on customer needs, among other business opportunities. Saying they both provide online services and have 450 stores, Jansen said they don’t plan any changes and people won’t feel like they’re dealing with a robot.
FINANCIAL RESULTS OF THE COMPANY
Commenting on the company’s financial results, Jansen said BT is making good progress as it navigates an “extraordinary macroeconomic background.”
IT core earnings rose 5 per cent to £7.9bn, meeting market expectations after growth in networking and consumer business offset the decline in business. However, free cash flow fell 5 per cent to £1.3bn.
BT said it expects to increase both its tentative revenue and its core earnings this year.