U.K. Telecom giant BT has named its first-ever female CEO, Allison Kirkby, who currently serves as the chief executive of Swedish telecoms company Telia. Kirkby will assume her new role early next year, succeeding Philip Jansen, who has been in charge for over four years.
Kirkby, a non-executive director at BT since 2019, will lead the implementation of cost-cutting measures, including a potential reduction of 55,000 jobs across the conglomerate by 2030. The strategy was outlined earlier this year by Jansen.
Expressing enthusiasm about the role, Kirkby said: “I’m fully supportive of our strategy and am excited about leading it into its next phase of development, as we grow to support customers, shareholders, and the U.K. Economy.”
With extensive experience in the telecoms industry, including leadership roles at Virgin Media and Tele2, as well as a background in consumer goods at Procter & Gamble, Kirkby brings a wealth of expertise to her new position.
She will receive a salary of £1.1 million ($1.4 million) and a target bonus of 120% of salary annually, according to BT.
Kirkby’s takeover as CEO next year will make her the 10th female CEO on the FTSE 100 list of chief executives, which dropped following the resignation of NatWest CEO Alison Rose.
“She is a proven leader, with deep sector experience and a history of having transformed businesses,” BT Group chairman Adam Crozier said in a statement, referring to Kirkby. “I look forward to supporting her as we drive our long-term strategy to transform BT Group.”
Cost-cutting drive at BT
In its most significant cost-cutting project since privatization in 1984, BT plans to downsize its workforce dramatically, aiming to go from 130,000 employees to 75,000 by the end of the decade.
Competitors like Virgin Media O2 and Vodafone are also streamlining their operations, resulting in layoffs affecting thousands of employees.
BT’s strategy involves building national fiber networks and rolling out high-speed 5G mobile services, which CEO Jansen believes will require a smaller workforce, ultimately reducing operational expenses.
Artificial intelligence plays a pivotal role in the downsizing plan, with Jansen identifying it as a “huge opportunity” that could replace 10,000 jobs. The company also intends to leverage A.I. For customer service roles.
“New BT Group will be a leaner business with a brighter future,” he said.