British telecoms group BT reported a significant workforce reduction of 7,731 employees since the end of March, bringing its headcount to 90,000 excluding international operations being spun out through a joint venture with US company Verizon. The company previously employed approximately 130,000 people including contractors two years ago.
The majority of job cuts occurred within BT’s Openreach division amid a slowdown in fibre network expansion and a broader initiative to reduce costs by several billion pounds by 2030. The cost-cutting efforts contributed to a 12 percent increase in pre-tax profit year-on-year, reaching £1.1bn for the six-month period ending in September. BT shares responded positively to the announcement, rising as much as 6 percent during early trading and reaching a five-year high, positioning the company among top performers in the FTSE 100 index.
Chief Executive Allison Kirkby, who assumed the role in February 2024, has directed the restructuring program. Earlier this year, she announced an increase to the company’s savings target from £3bn by 2029 to £3.7bn by 2030. The group projects its workforce will decline further to between 75,000 and 80,000 by the end of the decade, aligned with earlier estimates that anticipated artificial intelligence implementation could eliminate approximately 10,000 equivalent positions.
Kirkby’s compensation package more than doubled to £5.6m last year, marking the largest executive pay award at the telecoms company in over a decade. Since her appointment, BT shares have gained more than 70 percent. Under her leadership, BT also completed a £400m acquisition of smaller competitor TalkTalk, which employs approximately 900 people and provides broadband service to 2.5m households and public sector customers including hospitals and schools. The takeover remains under regulatory review.
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