BT has announced that it may exceed its previously stated target of cutting 40,000 jobs by 2030, as artificial intelligence (AI) becomes more central to its operations. The move comes as the company accelerates its cost-cutting programme and seeks to reorient itself in a changing telecoms landscape.

The CEO, Allison Kirkby, who took over in early 2024, has emphasised efficiency, automation, and simplification. Since then, BT has exited international operations, focused more tightly on its UK telecoms core, and made plans to separate out divisions like Openreach to unlock shareholder value.

The company is now embedding AI across key departments, including customer service, fault detection, and network operations. Automation of routine tasks is enabling BT to reduce headcount while aiming to improve efficiency and service delivery. AI-driven tools are being integrated into call centres and technical support functions, with a view to replacing human input for common troubleshooting and account management requests.

The financial rationale is clear. BT is in the midst of a £3 billion cost-reduction programme and has said that increases in employer national insurance contributions alone could cost it £100 million annually. Leveraging AI is seen as one of the few scalable methods of preserving margins while continuing to invest in infrastructure.

This restructuring has important implications across the telecoms sector. Job losses will be concentrated in customer-facing roles and back-office operations. At the same time, there is likely to be increased demand for skilled AI engineers, data analysts, and cybersecurity specialists.

Smaller providers and BT’s supply chain will need to adapt quickly. Companies offering AI systems, automation tools, and support services may find new commercial opportunities, particularly if BT’s adoption drives wider change in the sector.

The risk is that over-automation could impact customer service and employee morale. BT will need to strike a careful balance to maintain brand reputation and service levels, especially as it faces competition from a possible Vodafone–Three merger and new market entrants.

BT’s direction under Kirkby points to a leaner, more tech-led organisation. For investors, this may offer stability and long-term growth. For employees, it signals ongoing transformation and the need for reskilling. For the wider economy, it highlights how AI is moving beyond hype and directly reshaping corporate strategy and workforce planning.

Gross profit margin
This measures the profitability of your core operations by comparing gross profit (sales minus cost of goods sold) to total revenue. A stable or improving gross margin indicates pricing, production, or service delivery is efficient. A declining margin may signal rising costs or pricing issues.

Formula: (Gross Profit ÷ Revenue) × 100

Cash flow
Positive cash flow ensures a business can meet its obligations, pay suppliers and staff, and invest in growth. Even profitable businesses fail without adequate cash. Tracking cash flow (operating, investing, and financing activities) helps prevent liquidity crises.

Monitor: Monthly net cash inflow/outflow and rolling 3-month cash forecast

Customer acquisition cost (CAC)
This shows how much it costs to acquire a new customer. If CAC is rising without a corresponding increase in customer value or retention, it can drain profitability. Ideally, CAC should be lower than the revenue generated by each customer over their lifetime.

Formula: Total Sales and Marketing Costs ÷ Number of New Customers

Net profit margin
This is the bottom line—what remains after all costs, taxes, and interest. It reflects overall efficiency and financial viability. A strong net margin gives room for reinvestment and debt servicing, and signals long-term sustainability.

Formula: (Net Profit ÷ Revenue) × 100

The UK government has officially concluded its involvement with NatWest Group, formerly known as the Royal Bank of Scotland (RBS), by selling its remaining shares. This move ends nearly 17 years of public ownership that began during the 2008 financial crisis.

In 2008 and 2009, the government injected £45.5 billion into RBS to stabilise the bank, which at the time was one of the largest in the world, with over 40 million customers and operations in more than 50 countries. This intervention was deemed necessary to protect the UK economy and financial system from collapse, safeguarding millions of savers, businesses, and jobs.

Economic Secretary to the Treasury, Emma Reynolds, highlighted that bringing NatWest fully back into private ownership is a significant milestone for the UK banking sector post-financial crisis. She noted that the current government halted a planned retail share sale, which could have cost taxpayers hundreds of millions, opting instead to sell shares at market value to prioritise taxpayer interests.

To date, £35 billion has been returned to the Exchequer through share sales, dividends, and fees. While this is approximately £10.5 billion less than the original support provided, the Office for Budget Responsibility has indicated that the cost of inaction would have been far greater, potentially devastating people's savings, mortgages, and livelihoods, and undermining confidence in the UK's financial system.

Working capital refers to the day-to-day funds a business uses to manage its operations. It is the difference between current assets (such as cash, stock, and trade debtors) and current liabilities (such as trade creditors and short-term loans). Efficient working capital management is crucial for the smooth running of any business. But where does this money actually come from?

There are two main types of funding for working capital: internal and external.

Internal sources come from within the business. Profits retained after tax can be reinvested to support stock purchases, fund short-term customer credit, or settle supplier bills. Delaying payments to suppliers (without harming relationships) can also ease pressure on cash flow, as can encouraging faster customer payments. Managing stock levels carefully to avoid tying up funds in excess inventory is another way businesses internally finance working capital needs.

However, not all businesses have the luxury of strong retained profits or optimal cash flow. This is where external sources come into play.

Bank overdrafts are a common short-term solution. They offer flexible access to funds, often with interest charged only on the amount used. Overdrafts are useful for bridging short-term cash flow gaps but can become costly if used for extended periods.

Trade credit from suppliers is another widely used form of funding. By offering payment terms of 30 to 90 days, suppliers effectively finance part of a business’s working capital.

Invoice finance, including factoring and invoice discounting, allows businesses to release cash tied up in unpaid invoices. A lender advances a percentage of the invoice value upfront, improving cash flow while awaiting customer payment.

Short-term loans and revolving credit facilities are also available. These may come from banks or alternative lenders and can provide structured funding with fixed repayment schedules.

The right mix of funding depends on the nature of the business, the industry it operates in, and its financial health.

Running a business involves wearing many hats. Whether you are just starting out or looking to grow, developing the right skills can make all the difference. Here are ten practical skills that will help you manage your business with greater confidence and success.

1. Financial literacy
Understanding your numbers is vital. Learn how to read basic accounts, track cash flow, calculate profit margins, and understand tax obligations. This allows better decision-making and helps avoid costly surprises.

2. Time management
Managing your time well means focusing on what matters most. Learn to plan your day, delegate when needed, and avoid distractions so you can keep your business moving forward.

3. Leadership
Whether you employ staff or work with freelancers, good leadership helps you bring out the best in others. Clear direction, honest communication and the ability to motivate people all matter.

4. Problem-solving
Every business faces challenges. Building the habit of thinking through problems calmly, exploring options, and finding practical solutions will save time and reduce stress.

5. Basic marketing
You do not need to be a marketing expert, but you should understand the basics. Learn how to identify your ideal customer, promote your services, and use tools like social media or email newsletters effectively.

6. Sales skills
Being able to explain the value of your product or service, handle objections, and close deals is essential. Sales is not about pressure – it is about confidence and clarity.

7. Negotiation
Whether agreeing prices with suppliers or finalising a contract, negotiation skills can lead to better deals and long-term relationships.

8. Digital confidence
Modern businesses depend on digital tools. Learn how to use accounting software, manage online bookings or orders, and keep data safe. Embracing technology saves time and improves accuracy.

9. Strategic thinking
This means stepping back from daily tasks and thinking about where your business is going. Set goals, measure progress, and review what is working – and what is not.

10. Adaptability
Markets change, rules change, and customer needs evolve. Being open to new ideas and willing to adjust your approach is what keeps businesses alive and thriving.

Developing these skills takes time, but each one will give you more control and clarity in running your business.