BT Cuts Almost 8,000 Jobs Amid Sweeping Cost-Saving Programme

BT has confirmed that it has cut almost 8,000 jobs from its workforce since March as part of a sweeping cost-saving programme. The telecommunications giant reported that its headcount has fallen by 7,731 to 90,000, excluding staff involved in its international business, which is currently being transitioned into a joint venture with Verizon. This reduction is significant when compared to the company’s workforce size of approximately 130,000, including contractors, just two years ago.

Driving Efficiency Through Cuts

The majority of these workforce reductions have occurred within BT’s Openreach division, as the pace of its fibre network expansion has slowed. These measures are part of a broader strategy to slash billions in costs by 2030. Chief Executive Allison Kirkby, who joined the board before taking the top role in February 2024, has been instrumental in raising the firm’s total savings target from £3bn to £3.7bn. The company now anticipates its total headcount will settle between 75,000 and 80,000 by the end of the decade, a target influenced by the integration of artificial intelligence across its operations.

BT has reduced its workforce by nearly 8,000 as it pursues a multi-billion pound cost-saving strategy.

Financial performance has responded positively to these changes. In the six months leading to the end of September, BT reported a 12% increase in pre-tax profit, reaching £1.1bn. Following the announcement, shares in the London-listed company rose by 6% during early trading on Thursday, reaching a five-year high. Kirkby’s leadership has seen share prices climb by more than 70% since she assumed her position, a period during which her own remuneration package also saw a significant increase.

Beyond internal restructuring, BT has pursued external growth through the £400m acquisition of rival firm TalkTalk. While the deal remains under regulatory review, it is expected to secure telecommunications services for 2.5 million households and critical public infrastructure. The move has faced criticism from competitors like Virgin Media O2, which expressed concerns regarding BT’s market dominance. Meanwhile, BT continues to focus on its infrastructure goals, having rolled out its full-fibre network to 24.1 million homes, with a target of 25 million by the end of the year.

Why it matters

The significant reduction in BT’s workforce and its focus on aggressive cost-saving measures reflect a wider trend of consolidation and efficiency drives within the telecommunications sector. As companies like BT and Virgin Media O2 push to streamline operations, thousands of employees are affected by these structural changes.

For the broader market, these developments highlight the ongoing shift toward automation and the prioritisation of fibre infrastructure investment. The regulatory scrutiny surrounding the TalkTalk acquisition underscores the sensitivity of market competition in the UK, where BT remains the largest broadband provider.