BT’s human resources chief, Athalie Williams, is stepping down after two and a half years in the role, as the telecoms giant navigates choppy waters in its diversity strategy and ongoing business transformation. While BT insists her exit is unrelated, Williams departs hot on the heels of the company dropping its diversity, equity and inclusion targets from the bonus scheme for its 37,000 middle managers.

Williams, who served as chief people and culture officer, is returning to Australia to retire from executive life and pursue a portfolio career. She will be succeeded by Alison Wilcox, a familiar face at BT, having previously held the role of group HR director before moving on to non-executive roles in the NHS. Wilcox will officially step into the position from 1 June, with Williams assisting in a transitional handover.

The timing of Williams’ departure has inevitably sparked speculation, coming just months after BT quietly reshuffled its group scorecard, removing DEI metrics as a bonus determinant for most managers. Previously, up to 10% of annual bonuses for this cohort were tied to targets around gender, ethnicity, disability, and engagement among underrepresented employee groups. These will now be replaced by measures of general employee engagement.

A quiet rewrite of priorities?

Despite the company’s reassurances that inclusion remains a priority, the DEI rollback contrasts starkly with public statements made by chief executive Allison Kirkby.

Kirkby, who took the helm last year as BT’s first female CEO, has been vocal about the importance of building a workforce that reflects the communities it serves.

In an internal memo earlier this year, Kirkby told employees: “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.” She went on to denounce the retreat from DEI seen in other firms, adding: “It’s been hard lately to see companies and governments stepping back from their commitment to inclusion, equity and diversity … I want to be absolutely clear: that’s not what we believe at BT.”

Nevertheless, BT’s decision mirrors broader corporate headwinds, particularly in the US, where several major companies – including Meta, McDonald’s and Walmart – have quietly watered down their DEI agendas. The pushback has been emboldened by a 2023 US Supreme Court ruling that limited race-based admissions in universities, prompting private sector caution in maintaining bold inclusion targets.

Inclusion metrics remain, but only at the top

BT says the shift in incentives does not signal a departure from its DEI commitments. The diversity targets will remain part of the scorecard for its 550 most senior leaders. The group has also retained its representation goals for 2025: 41% women, 15% ethnic minorities and 10% individuals with disabilities in senior management. Progress has been mixed – current figures show 35% of BT’s senior leaders are women and 9% are from ethnic minority backgrounds, while the disability target has already been exceeded by 4%.

A company spokesperson reiterated: “We remain committed to our inclusion and representation targets and are making good progress towards them … Inclusion will remain part of our senior management bonus calculations, and we have received strong support from our shareholders on the proposals to amend our group scorecard.”

Wider shakeup under Kirkby’s stewardship

Williams’ exit and the shifting bonus structure are part of a broader organisational overhaul spearheaded by Kirkby. Since taking the top job, she has been steadily reengineering BT’s strategic focus, narrowing its sights on core mobile and broadband services and scaling back international ventures.

Kirkby is reportedly pressing ahead with plans to trim tens of thousands of jobs by the end of the decade as BT looks to shave billions off its cost base. The telecoms firm has already announced plans to cut up to 55,000 roles globally by 2030, with more than £900 million in annual savings realised to date. In the past financial year alone, BT’s total headcount fell by 3%, while its directly employed workforce was down by 8%.

The CEO is also preparing to offload BT’s 50% stake in TNT Sports to joint venture partner Warner Bros Discovery and considering further divestments in the group’s international arm. BT recently sold off its troubled Italian unit and previously shed its Irish wholesale and enterprise business.

As part of this simplification drive, BT engaged JMW Consultants through a competitive procurement process to run leadership performance projects throughout 2024, which concluded at year-end.

Flat earnings, shifting focus

Financially, BT finds itself in a holding pattern. Underlying earnings in the year to 31 March rose a modest 1% to £8.21 billion, propped up by cost savings amid a 2% dip in revenues. The group forecasts a similarly flat trajectory this financial year, with guidance set between £8.2 billion and £8.3 billion in underlying earnings, as total revenues hover around £20 billion.

However, there are some green shoots. UK service revenues ticked up 1% in the final quarter of the year, trimming the annual decline to just 0.4%. Openreach, BT’s networks division, was the only business unit to post full-year revenue and earnings growth, thanks to its continued fibre broadband rollout.

Kirkby hailed the progress, stating: “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.”

With a shakeup of the executive bench, a recalibration of incentive structures, and a sharpened strategic focus, BT is clearly entering a new chapter.

What’s certain is that Kirkby is steering BT with the decision to streamline operations, double down on domestic markets, and prune back what no longer serves the bottom line.