BT Group is undergoing significant restructuring, with CEO Allison Kirkby announcing plans to reduce over 40,000 jobs and cut costs by £3 billion ($4 billion) by 2030.

Kirkby indicated that advancements in artificial intelligence could lead to further job cuts beyond the current plans, as the company aims to become a 'leaner' business.

She suggested that if the impact of AI is substantial, BT may need to consider becoming smaller by the end of the decade.

Despite the challenges faced by BT's business and consumer units, which are experiencing revenue declines due to reduced legacy voice services and handset sales, the resilience of Openreach has helped offset some of these losses.

As part of its transformation, BT has separated its international business into a distinct division and is exploring offers for that segment.

Additionally, BT is contemplating a potential acquisition of rival TalkTalk, which has struggled financially since being taken private in 2021.

Kirkby also discussed the potential spin-off of Openreach, stating that its value is not currently reflected in BT's stock price, although there are no active plans for this at the moment.

The company reported strong demand for fiber broadband, contributing to over £900 million in cost savings, which positively impacted its full-year earnings and cash flow.

This restructuring and focus on AI reflect a broader trend in the telecommunications sector, where automation is expected to deepen job cuts.

BT's stock has experienced fluctuations, closing recently at 1.840 GBP, with an average target price of 1.961 GBP, indicating mixed market sentiments.

The company has been integrating AI into its operations, including customer service, with its virtual assistant managing up to 60,000 customer conversations weekly.

BT clarified that it is not actively considering a spin-off of Openreach at this time, emphasizing its commitment to exploring options if the division's value remains undervalued.