British telecoms company BT has reduced its headcount by 7,731 employees since the end of March, reducing its core workforce to 90,000 people, according to an announcement made this week. The reductions exclude staff in the company’s international operations, which are being transferred to a joint venture with US telecoms firm Verizon. The workforce had numbered approximately 130,000 people including contractors two years prior.
The majority of job cuts have occurred within BT’s Openreach division, which handles the company’s fiber network expansion. The reductions are tied to a slowdown in fiber buildout activity and a broader corporate initiative to reduce costs by billions by 2030. These workforce reductions contributed to a 12% year-on-year increase in pre-tax profit to £1.1bn for the six-month period ending in September. BT’s share price rose as much as 6% in early trading following the announcement, reaching a five-year high and ranking among top performers in the FTSE 100 index.
Chief Executive Allison Kirkby, who assumed the role in February 2024, has directed the cost-cutting programme. Earlier this year, the company raised its savings target from £3bn by 2029 to £3.7bn by 2030. The company now projects its headcount will reach between 75,000 and 80,000 by the end of the decade, toward the lower end of a 75,000 to 90,000 range previously established. The company had indicated that artificial intelligence adoption could eliminate roles equivalent to approximately 10,000 positions.
BT is also pursuing a £400m acquisition of smaller rival TalkTalk, which employs around 900 people and serves 2.5m households alongside public sector customers including hospitals and schools. Kirkby stated she could not provide details on integration plans as the deal remains under regulatory review. BT holds approximately 30% of the UK broadband market share and has expanded its full-fiber network to 24.1m homes, with targets to reach 25m by year-end.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI