UK Telecoms Firm BT Group To Slash Up To 55,000 Jobs By 2030

As per the company's recent earnings report, with a current workforce of 130,000 employees, including staff and contractors, BT aims to reduce its employee count to between 75,000 and 90,000 by 2030

BT, the British telecoms and television group, announced its intention to cut up to 55,000 jobs by the end of the decade as part of a cost-cutting initiative to streamline its workforce, reported Associated Press. As per the company's recent earnings report, with a current workforce of 130,000 employees, including staff and contractors, BT aims to reduce its employee count to between 75,000 and 90,000 by 2030, the news agency said. 

“By continuing to build and connect like fury, digitise the way we work, and simplify our structure, by the end of the 2020s BT Group will rely on a much smaller workforce and a significantly reduced cost base. New BT Group will be a leaner business with a brighter future.” the company CEO Philip Jansen said.

Amidst flagging economic growth and surging inflation, the tech and telecom industry is experiencing a significant shakeup that has resulted in job cuts. UK-based wireless carrier Vodafone recently announced its plans to lay off 11,000 workers as part of a major revamp. This move aligns with the broader trend in the industry, where companies are restructuring their operations to adapt to challenging economic conditions.

BT, formerly known as British Telecom and a former state monopoly, has stated that as its fiber-optic broadband and 5G mobile networks are fully deployed, the company will require fewer workers for construction and maintenance, the AP report said.

In addressing the job cuts, CEO Jansen emphasized BT's collaboration with union partners and the utilization of attrition as part of the restructuring process.

According to AFP, BT on Thursday announced that its net profit for the fiscal year ending in March surged by 50 per cent to £1.9 billion ($2.4 billion), although this figure was influenced by a one-off tax credit. However, pre-tax profit experienced a decline of 12 per cent to £1.7 billion compared to the previous year, while revenue dipped by 1 per cent to £20.7 billion.

The news prompted investors to react negatively, causing BT's share price to plummet by almost nine percent to 134.80 pence during morning trading on the London stock market, the report said.