BT has cut almost 8,000 jobs in six months as part of a restructuring programme aimed at reducing costs across its operations. The telecommunications group reported a 12% increase in pre-tax profits to £1.1bn for the six months ending 30 September, while its shares briefly reached their highest level in five years.
The reductions have largely affected Openreach, BT’s network infrastructure division, where staffing requirements have declined as the expansion of its fibre broadband network slows. The changes form part of a wider strategy led by chief executive Allison Kirkby, who has increased the company’s cost-saving ambitions while overseeing significant changes to its business.
Workforce Reductions Deepen As BT Restructures Its Operations
According to The Guardian, BT reduced its workforce by 7,731 people between the end of March and September, leaving approximately 90,000 employees when its international business is excluded. The company employed around 130,000 people, including contractors, two years earlier.
Figures reported by London Loves Business show that employee numbers have fallen by 11,712 over the past year, representing an 11% reduction. Most of the latest departures have occurred within Openreach, where the company is reducing resources following the peak of its nationwide fibre construction programme.
Kirkby, who became chief executive in February 2024, has overseen the restructuring as BT seeks to simplify its operations and reduce expenditure. Earlier this year, the company increased its savings target from £3bn by 2029 to £3.7bn by 2030.
The planned separation of BT’s international operations into a joint venture with US telecommunications company Verizon has since led to an adjustment in its annual savings target to approximately £3.5bn.
BT expects its overall workforce, including the international operation scheduled for separation, to reach approximately 75,000 by 2030. Excluding that business, its projected headcount stands between 65,000 and 70,000.
The company previously indicated that artificial intelligence could eventually eliminate the equivalent of approximately 10,000 roles across its operations.
Rising Profits Coincide With BT’s £400M TalkTalk Acquisition
BT’s latest financial results indicate that its restructuring is contributing to improved profitability. Pre-tax profits increased by 12% to £1.1bn during the six months ending in September.
The company’s shares rose by as much as 6% during early trading on Thursday, reaching a five-year high and placing BT among the FTSE 100’s strongest performers.
According to London Loves Business, Kirkby said the company had achieved £312m in annualised savings during the first half of its financial year.
“Our UK-centric strategy and transformation is clearly delivering with £312 million of annualised savings achieved in the first half, as we continue to simplify and modernise,” she said.
Alongside its workforce reductions, BT has agreed a £400m acquisition of struggling broadband provider TalkTalk. The transaction involves a business employing approximately 900 people in Salford, Greater Manchester.
The deal also secures telecommunications services for 2.5 million households and public sector customers, including hospitals and schools.
The acquisition remains subject to regulatory scrutiny. Kirkby said BT could not provide further details about its plans for TalkTalk while the review continues. Virgin Media O2, which had also considered acquiring TalkTalk, criticised the transaction, describing it as a “stitch-up” that would strengthen BT’s existing market position.
