BT, the telecommunications behemoth, has announced plans to significantly reduce its workforce, from 130,000 to somewhere between 75,000 and 90,000 by the end of the financial year 2030.
This would amount to a decrease of approximately 42%. Over the next seven years, BT aims to eliminate up to 55,000 jobs as part of an aggressive cost-cutting strategy.
CEO Philip Jansen clarified that the job cuts would be primarily achieved through less reliance on contractors, particularly upon completion of BT’s full-fibre broadband infrastructure project. Moreover, an estimated 10,000 positions are expected to be supplanted by automation systems powered by artificial intelligence.
Under Mr. Jansen’s tenure over the past five years, the workforce has been progressively scaled down in an effort to bolster profit. His goal is to achieve savings of £3bn per annum by the end of 2025. BT has been contemplating such drastic reductions since at least 2019.
This news comes on the heels of BT’s latest financial report. For the first time in six years, Britain’s leading broadband and mobile service provider has reported a growth in pro forma revenue and core earnings for the year ending in March. With a 5% increase in full-year adjusted core earnings of £7.9bn, BT met market forecasts.
Despite the positive report, BT’s shares dropped by 7.8% in early trading. However, the company’s stock has still witnessed an impressive growth of 32% year to date.
