BT and More: Headcount Becomes Liability in Era of Generative AI
Recently law firms Kirkland & Ellis added more than 300 lawyers and Paul Weiss lost nine litigation partners. But those additions and reductions in headcount may become an irrelevant metric in sizing up where a business is at. Actually, a growing manpower number could become a downright liability. More on point will be revenue, profits, productivity, geographical footprint, ranking in innovation and, for public companies, the stock price. Without apology or sugarcoating Brit telecommunications player BT's CEO Allison Kirby discussed massive cuts in headcount by 2030. What's driving that is not only generative AI itself. But also as Kirby puts it: what the company can be learning from AI during the rest of the decade. The Reductions in Force could exceed 40,000. Kirby adds that such an estimate "does not reflect the full potential of AI." Just look at how Big Law operates. The fewer the partners the higher the Profits Per Equity Partner, the greater the opport...