BT cuts 7,731 jobs as cost savings lift profit

BT expects 75,000 to 80,000 workers by decade’s end

On November 5, BT said its workforce had fallen by 7,731 to 90,000 since the end of March. The reported total excludes staff in an international business being spun out in a joint venture with the US telecoms company Verizon, and most of the reductions came from Openreach as the fiber-network buildout slowed and the company pushed ahead with a drive to slash billions in costs by 2030.

BT’s workforce, including contractors, had been about 130,000 two years ago. The company now expects its headcount to end the decade at 75,000 to 80,000, toward the lower end of an estimated range of 75,000 to 90,000 it set out in 2023. In 2023, BT said the introduction of AI across the business could result in the elimination of the equivalent of about 10,000 roles.

The cuts helped bolster BT’s pre-tax profit, which rose 12% to £1.1 billion in the six months ended September. BT shares, which are listed in London, rose as much as 6% in early trading on Thursday, touching a five-year high and ranking the company among the best performers across the FTSE 100.

Allison Kirkby, a former BT board member who became chief executive in February 2024, has overseen a multibillion-pound cost-cutting program across the business. This year, she said BT would raise its savings target from £3 billion by 2029 to £3.7 billion by 2030.

Kirkby’s pay and bonus package more than doubled last year to £5.6 million, the largest pay award to a BT chief executive in more than a decade. BT shares have risen more than 70% since she started in the role.

Kirkby has also overseen BT’s £400 million takeover of struggling smaller rival TalkTalk. She said on Thursday she was unable to provide any details on plans for the business because the deal remained under regulatory review.

TalkTalk, headquartered in Salford, Greater Manchester, employs about 900 people. The rescue deal secured telecoms supply to 2.5 million households and vital public service customers including hospitals and schools. Openreach, the broadband network owned by BT, is also TalkTalk’s biggest supplier.

Virgin Media O2, which had also looked at buying TalkTalk, reacted angrily to the deal at the time, calling it a “stitch-up” that would further boost BT’s dominant position. Earlier this week, Virgin Media O2 announced plans to cut thousands of jobs in an £800 million cost-savings drive.

BT is the biggest broadband provider in the UK, with a market share of about 30%, according to estimates by Enders Analysis. BT told investors on Thursday that the Openreach full-fiber network was seeing record demand. The network has been rolled out to 24.1 million homes so far, and BT is targeting 25 million by the end of the year.

BT’s reported results therefore combine a workforce down 7,731, a higher savings target and rising profit with record demand for the full-fiber network. The pending TalkTalk regulatory review remains the main transaction detail still unresolved in the company’s latest update.