BT sheds nearly 8,000 more jobs as cost-cutting drive continues

BT‘s workforce has fallen by almost 8,000 since the end of March as the telecoms giant pushes ahead with its cost-cutting programme.

The group, which rescued TalkTalk from administration for £400 million last month, said its total workforce, excluding the international business, dropped by 7,731 to 90,000 over its half-year to the end of September.

Compared with a year earlier, the headcount is down 11,712, or 11 per cent.

Most of the reduction came from fewer roles being needed across its Openreach division, as it lowers resources following the peak of its fibre network build, as part of a group-wide drive to slash billions of pounds in costs by 2030.

The savings drive helped lift pre-tax profits by 12 per cent year-on-year to £1.1 billion in the six months to September 30.

BT said it could not give details on its plans for TalkTalk and jobs at the firm, as it is required by regulators to ring-fence the business and run it separately while regulators assess the deal.

The group stepped in to rescue TalkTalk’s consumer division and its wholesale arm PlatformX Communications (PXC) after it failed to find a buyer for its two businesses.

The move protected jobs for TalkTalk’s 900 workers based in Salford, Greater Manchester.

It also secured telecoms supply to 2.5 million households and vital public service customers, including hospitals and schools.

Culture Secretary Lisa Nandy intervened in the deal, invoking a Public Interest Intervention Notice and ordering a speedy investigation by the Competition and Markets Authority.

The watchdog has been given a deadline to report back to her by October 19.

In May, BT said it was ramping up its cost-savings target by another £700 million and extending its restructuring programme by a year, to the end of March 2030.

That leaves its workforce, including the soon-to-be-hived-off international arm, at the lower end of the previously forecasted range, at about 75,000 by 2030.

The figure is down from 130,000 workers, including contractors, in 2024.

But when stripping out the employees at its international business, which is being spun out into a joint venture with US mobile phone firm Verizon, the firm will be left with around 65,000 to 70,000 workers, it said on Thursday.

Its cost-savings target has also been lowered to about £3.5 billion a year to take account of the international business separation, down from £3.7 billion previously.

Allison Kirkby, chief executive of BT, said: “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.

“Our proposed international joint venture with Verizon is progressing at pace, and we’ve also stepped up for the country with the acquisition of TalkTalk, protecting millions of customers while creating value for all our stakeholders.”