BT has shed nearly 8,000 roles since the end of March as it pushes ahead with a sweeping cost-reduction drive, with pre-tax profit rising 12% to £1.1bn in the six months to September.
The telecoms group said its workforce had fallen by 7,731 to 90,000, excluding staff in its international business, which is being spun out in a joint venture with Verizon. Two years ago, including contractors, BT employed about 130,000 people.
Most of the cuts have been at BT’s Openreach division, where the buildout of its fibre network is slowing, and through a drive to slash billions in costs by 2030. BT is the UK’s biggest broadband provider, with a market share of about 30% according to Enders Analysis. Openreach’s full-fibre network has been rolled out to 24.1m homes so far, with a target of 25m by the end of the year.
Chief executive Allison Kirkby, who took the role in February 2024, has overseen the cost-cutting programme and this year said BT would raise the group’s savings target from £3bn by 2029 to £3.7bn by 2030. BT’s headcount is now expected to end the decade at between 75,000 and 80,000, towards the lower end of a range set out in 2023, when the company said the introduction of AI could eliminate the equivalent of about 10,000 roles.
Kirkby’s pay and bonus package more than doubled last year to £5.6m, the biggest award to a BT boss in more than a decade. Shares in BT have risen more than 70% since she started.
Kirkby has also overseen the £400m takeover of struggling rival TalkTalk, a deal that remains under regulatory review. TalkTalk, which employs about 900 people, and the rescue deal secured telecoms supply to 2.5m households and public sector customers including hospitals and schools. Virgin Media O2 (VMO2), which had also considered buying TalkTalk, reacted angrily, calling the deal a “stitch-up” that it said would further boost BT’s dominant position.
BT’s shares shot up as much as 6% in early trading on Thursday, touching a five-year high and ranking among the best performers on the FTSE 100.
Analysis
Why This Matters
- BT's job cuts and profit growth highlight the telecom industry's shift towards automation and cost efficiency, affecting thousands of workers.
- The TalkTalk acquisition could reshape the UK broadband market, raising competition concerns among rivals like Virgin Media O2.
- The use of AI to eliminate roles signals broader workforce trends across the sector.
Background
BT, the UK's largest broadband provider, has been under pressure to modernise its network and cut costs. The current restructuring began several years ago, with a goal to save £3.7bn by 2030. The pending takeover of TalkTalk would expand BT's customer base and strengthen its position in the market, but has drawn criticism from competitors.
Key Perspectives
BT (chief executive Allison Kirkby): Has driven the cost-cutting programme and raised the savings target, while the TalkTalk deal remains under regulatory review as a strategic move to improve efficiency and market position.
Virgin Media O2: Called the TalkTalk deal a “stitch-up” that it said would further boost BT’s dominant position in the market.
What to Watch
- The regulatory decision on BT's acquisition of TalkTalk, which is expected to face scrutiny from UK competition authorities.
- BT's ongoing job reductions towards a target of 75,000-80,000 employees by 2030.
- Any further reaction from Virgin Media O2, which recently announced its own job cuts in a £800m savings drive.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedBT cut almost 8,000 jobs.UK news | The Guardian: “BT has cut almost 8,000 jobs since the end of March”
- SupportedCost-cutting helped lift BT’s pre-tax profit by 12%.UK news | The Guardian: “The huge cuts helped BT increase its pre-tax profit by 12% year on year to £1.1bn”
- SupportedBT’s pre-tax profit rose 12% to £1.1bn in the six months to the end of September.UK news | The Guardian: “increase its pre-tax profit by 12% year on year to £1.1bn in the six months to the end of September.”
- SupportedBT’s workforce fell by 7,731 to 90,000, excluding its international business.UK news | The Guardian: “The telecoms group said its workforce had fallen by 7,731 to 90,000, excluding staff in its international business”
- SupportedBT’s international business is being spun out in a joint venture with Verizon.UK news | The Guardian: “excluding staff in its international business, which is being spun out in a joint venture with the US telecoms company Verizon.”
- SupportedMost job cuts have been at Openreach as its fibre-network buildout slows.UK news | The Guardian: “Most of the cuts have been at BT’s Openreach division as the buildout of its fibre network slows”
- SupportedBT raised its savings target from £3bn by 2029 to £3.7bn by 2030.UK news | The Guardian: “This year she said BT would raise its savings target from £3bn by 2029 to £3.7bn by 2030.”
- SupportedBT’s headcount is expected to be 75,000 to 80,000 by the end of the decade.UK news | The Guardian: “The group’s headcount is now expected to end the decade at between 75,000 and 80,000”
- SupportedIn 2023, BT said AI could eliminate the equivalent of about 10,000 roles.UK news | The Guardian: “At that time it said the introduction of AI across its business could result in the elimination of the equivalent of about 10,000 roles.”
- SupportedOpenreach’s full-fibre network had reached 24.1m homes, with a target of 25m by year-end.UK news | The Guardian: “It has been rolled out to 24.1m homes so far. It is targeting 25m by the end of the year.”
- SupportedBT’s £400m takeover of TalkTalk remains under regulatory review.UK news | The Guardian: “Kirkby has also overseen the £400m 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.”
- SupportedVMO2 called the TalkTalk deal a “stitch-up” and said it would further boost BT’s dominant position.UK news | The Guardian: “Virgin Media O2 (VMO2), 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.”