BT has cut almost ۸,۰۰۰ jobs since the end of March as it pushes ahead with sweeping cost reductions across the business.
The telecoms group said its workforce had fallen by ۷,۷۳۱ to ۹۰,۰۰۰, excluding staff in its international business, which is being spun out in a joint venture with the US telecoms company Verizon. It had a workforce of about ۱۳۰,۰۰۰ people, including contractors, two years ago.
Most of the cuts have been at BT’s Openreach division as the buildout of its fibre network slows, as well as through a drive to slash billions in costs by ۲۰۳۰.
The huge cuts helped BT increase its pre-tax profit by ۱۲% year on year to £۱.۱bn in the six months to the end of September.
BT shares, which are listed in London, shot up by as much as ۶% in early trading on Thursday, touching a five-year high and ranking it among the best performers across the FTSE ۱۰۰.
Allison Kirkby, who had been a BT board member and became chief executive in February ۲۰۲۴, has overseen the cost-cutting programme across the business. This year she said BT would raise its savings target from £۳bn by ۲۰۲۹ to £۳.۷bn by ۲۰۳۰.
The group’s headcount is now expected to end the decade at between ۷۵,۰۰۰ and ۸۰,۰۰۰, towards the lower end of an estimated range of ۷۵,۰۰۰ to ۹۰,۰۰۰ set out in ۲۰۲۳. At that time it said the introduction of AI across its business could result in the elimination of the equivalent of about ۱۰,۰۰۰ roles.
Kirkby’s pay and bonus package more than doubled last year to £۵.۶m, the biggest pay award to a boss of the telecoms company in more than a decade. Shares in BT have risen by more than ۷۰% since she started in her role.
Kirkby has also overseen the £۴۰۰m takeover of its struggling smaller rival TalkTalk. She said on Thursday she was unable to provide any details on plans for the business as the deal was still under regulatory review.
TalkTalk, which is headquartered in Salford in Greater Manchester, employs about ۹۰۰ people. The rescue deal secured telecoms supply to ۲.۵m households and vital public sector customers including hospitals and schools.
Virgin Media O۲ (VMO۲), which had also looked at buying TalkTalk, reacted angrily to the deal at the time, calling it a “stitch-up” that it said would further boost BT’s dominant position.
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BT is the biggest broadband provider in the UK, with a market share of about ۳۰%, according to estimates by Enders Analysis. Openreach, the broadband network owned by BT, is TalkTalk’s biggest supplier.
The company told investors on Thursday it had record demand for Openreach’s full-fibre network, so far rolled out to ۲۴.۱m homes. It is targeting ۲۵m by the end of the year.
VMO۲ announced plans to cut thousands of jobs in an £۸۰۰m savings drive earlier this week.
