BT Group, the British telecommunications company, announced plans to reduce its workforce by 40,000 to 55,000 jobs by the end of the current contract period, as it shifts towards artificial intelligence and automated services, according to the British newspaper "The Independent" on Tuesday.
The telecommunications giant currently employs around 130,000 people, but plans to reduce this number to between 75,000 and 95,000 over the mentioned period.
This means that up to 55,000 jobs could be eliminated over the next 5 to 7 years, which is more than 40% of the company's workforce.
The shift towards artificial intelligence does not mean that customers will deal with robots, as the company has several channels to communicate with them.
CEO Philip Jansen stated that "advanced artificial intelligence is a fundamental part of the company's technology transformation plans and that the plans will make services faster, better, and smoother for customers."
He emphasized that "the shift towards artificial intelligence does not mean that customers will deal with robots, as the company has several channels to communicate with them, and we operate online, have 450 stores, and this is not at all a plan for change... there are many opportunities for our customers to interact with people in BT... there are plenty of employees that can be spoken to,"
BT also stated that, once the broadband and 5G networksare fully deployed, it will not require as many engineers to build and maintain the network.
More than 15,000 jobs will also be eliminated when investment begins to convert the network to full fiber optics, and over 10,000 jobs will disappear as the group stops operating dual networks like third and fourth-generation networks.
This move comes as the company announced a 12% drop in pre-tax profits to £1.7 billion ($2.1 billion) last year and a slight decline in revenue. However, the company believes that new technology will eventually create new jobs.
Overall, BT's transition to artificial intelligence and automation is expected to lead to significant workforce reductions, but the company is optimistic that it will ultimately improve customer experiences and create new opportunities for growth.