BT rocked by backlash as it cut 55,000 jobs: laid-off workers to be replaced by artificial intelligence
BT faces another head-on with staff after revealing plans to cut tens of thousands of jobs by 2030.
Boss Philip Jansen wants to reduce the workforce from 130,000 to between 75,000 and 90,000 by the end of the decade.
About 10,000 jobs will be replaced by artificial intelligence (AI) as rapidly advancing robots impact the labor market.
This week, rival network Vodafone announced that it will cut 11,000 jobs over the next three years.
Jansen’s plans provoked a quick reaction from trade unions, leading to strikes.
Job carnage: BT boss Philip Jansen (pictured) said he wants to reduce the workforce from 130,000 to between 75,000 and 90,000 by the end of the decade
Of shares also up 5 per cent, or 7.4 pence, to 140.7 pence, Jansen’s own future was also thrown into the spotlight amid speculation that his tenure at the top of BT could end after four years.
The Mail on Sunday revealed in March that succession planning was underway, although no formal inquiry has been launched.
Prospect, representing thousands of executives, said it was “deeply concerned.”
“Announcing such a massive cut in this way will be deeply distressing to workers,” National Secretary John Ferrett said.
The Communication Workers Union (CWU), which represents around 40,000 BT employees, said it has made it “absolutely clear” that it wants to “maintain as many direct jobs as possible”.
The comments will raise fears of a repeat of last year’s strikes at BT, when staff, including 999 call handlers, went on strike.
In November, a deal gave workers a pay raise of between 6 percent and 16 percent.
Jansen estimated that about 15,000 jobs would be lost to staff and outside contractors; 10,000 by upgrading and disabling older networks and systems; 10,000 through ‘automation and digitization’; and 5,000 through ‘normal restructuring’.