BT denies exit of human resources chief is due to firm dumping diversity targets from bosses' bonuses
BT has parted company with its human resources chief in the wake of dropping the diversity targets in its manager bonus scheme.
Athalie Williams, BT's chief people and culture officer, will leave the company after two and a half years in the role for personal reasons.
The HR boss is understood to be going back to retire in her native Australia and spend more time with her family.
She is set to be placed by Alison Wilcox, who previously served as BT's group HR director before taking up non-executive positions in the NHS.
Last month, the company dropped the diversity, equity and inclusion (DEI) measure in its manager bonus scheme but BT insists this is not connected to Ms William's departure.
The DEI measure accounted for 10pc of the bonus incentive before it was replaced it with a measure of employee engagement, the Telegraph reports.
Despite BT saying the change was made with 'strong support' from shareholders, it came in direct contrast to comments from BT's chief executive Allison Kirkby.
Following Donald Trump's re-election, she criticised other companies for watering down their DEI targets.
In a memo to staff earlier this year, she wrote: 'I believe we need to be as diverse as the customers we service, to be the customer-centric company we aspire to be and to be able to live up to our purpose.
'When we determine to be inclusive, we create an environment where everyone, no matter their background or characteristics, feels respected, valued and like they belong.'
The chief executive is understood to have been attempting to shake up the telecoms giant following her appointment last year and has made a number of senior leadership changes.
It is believed Ms Kirby is focusing on core mobile and broadband offerings including halting plans to dump BT as the company's flagship brand and develop the group's international operations ahead of a potential sale.
The company is reportedly near to finalising a deal to sell its 50pc stake in TNT Sports, formerly known as BT Sport, to joint venture partner Warner Bros Discovery.
Reports also suggest that Ms Kirkby is going forward with plans to cut tens of thousands of jobs by the end of 2029.
The firm has previously announced plans to cut up to 55,000 jobs worldwide by 2030 as it looks to shave billions of pounds off its cost base.
It said it was on track to deliver on the plans, with more than £900 million of annual cost savings delivered so far.
A BT spokesman said: 'Athalie Williams, chief people and culture officer, has decided to return to her family in Australia and retire from executive life to pursue a portfolio career.
'She will continue to support on her handover to Alison Wilcox, who will return to BT to take on this role from June 1.
'We remain committed to our inclusion and representation aspirations to better reflect the customers and communities we serve, and we are making good progress towards them.
'We have received strong support from our shareholders on the proposals to amend our group scorecard.
'BT Group works with external advisors to support strategic programmes, and following a competitive procurement process engaged JMW Consultants to deliver projects focused on enhancing leadership performance.
'These projects took place over the course of 2024, and concluded at the end of year.'
The group has said it expects earnings to remain largely flat over the year ahead as it presses ahead with a major cost-cutting overhaul and plans to refocus on its UK business.
The group reported underlying earnings up 1% to £8.21 billion in the year to March 31, as cost savings helped offset a 2% fall in revenues.
BT said it ended its financial year with 3% fewer staff, at 116,000 in total including contractors, while its directly employed workforce was slashed by 8%.
As revenues remain under pressure, the group is forecasting little change to underlying earnings over the new financial year, with guidance for between £8.2 billion and £8.3 billion.
Underlying revenues will remain at around £20 billion, having delivered £20.4 billion in 2024-25.
But the group said UK service revenues returned to growth in the second half of its last financial year, up 1% in the final quarter, limiting the overall annual decline to 0.4%.
Its networks division, called Openreach, was the only part of the business that saw both revenue and earnings growth over the year as it continued to roll out fibre across Britain.
The firm said it saw growth in its consumer broadband customer base during the final quarter for the first time since December 2021.
Ms Kirkby said: 'The momentum in, and impact of, our full fibre programme is such that we are now raising our build target by 20% to up to five million UK premises in 2025-26, keeping us comfortably on track to reach 25 million by the end of 2026.'
Ms Kirkby is leading a revamp of the company after taking on the top job last year and is considering selling off or breaking up its international arm, which the group has carved out from the rest of the business as it looks to refocus on its UK operations.
BT has been gradually reducing its overseas business as part of wider cost-cutting plans, recently selling off its troubled Italian business and previously agreeing the sale of its Irish wholesale and enterprise business unit.
Ms Kirkby said the group had 'accelerated the pace of simplification and transformation' over the past year.
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