The job cuts, primarily within the Openreach division, come as the firm pushes to slash billions of pounds in costs by 2030 and adapts to a slowing fibre network rollout.
Profits Rise as Restructuring Lowers Savings Target
The company reported a 12 per cent year-on-year rise in pre-tax profits to £1.1 billion for the six months ending September 30, a performance attributed to the ongoing restructuring programme. While the group previously targeted £3.7 billion in savings by 2030, the target has been adjusted to approximately £3.5 billion annually to account for the separation of its international division.
Despite these gains, the company’s debt pile rose to £21 billion, and cash left over after running and investing in the business fell 59 per cent to £236m. BT shares rose by as much as 6 per cent in early trading on Thursday, reaching a five-year high. This trajectory follows a period of significant downsizing; two years ago, the group employed approximately 130,000 people, including contractors.
Headcount Shrinks Toward 2030 Workforce Targets
The company’s total headcount is expected to end the decade at about 75,000. Once that separation is finalized, the remaining UK-focused workforce is projected to be between 65,000 and 70,000 by 2030. In 2023, the company noted that the introduction of artificial intelligence across its operations could result in the elimination of approximately 10,000 equivalent roles.
Kirkby noted that the company’s strategy is shifting in response to current economic pressures, including high interest rates.
As part of this shift, BT is observing a trend among operators to prioritize buying rather than building
network access to manage capital constraints.