BT Group Cuts 2,000 Jobs Amid Ongoing Overhaul

BT Group announced significant changes as it faced a challenging financial landscape. In the six months leading to September 30, the company reported a 10% drop in pre-tax profits to £967 million, alongside a 3% decrease in revenues to £10.1 billion. This decline is attributed to a competitive retail environment and weakened trading performance, particularly outside the UK. In response, BT is cutting costs by reducing its workforce by 2,000, amounting to a 4% year-on-year reduction, as part of a plan to streamline operations and improve efficiency. The firm aims to bring its total workforce down to between 75,000 and 90,000 by 2030, which underscores its commitment to significant cost reductions. This job cutting initiative is expected to save BT approximately £433 million in annual costs for the first half of the year alone. During this restructuring phase, BT continues investing in its full-fibre broadband deployment and expanding its 5G network to cover 80% of the UK population. Recent leadership under Allison Kirkby has resulted in a more aggressive cost-cutting strategy, aiming to not only modernize operations but also to enhance connectivity across the UK. BT had previously anticipated revenue growth of up to 1% for the next financial period but has now adjusted expectations to a decline of 1% to 2%. Despite the grim outlook for revenues, BT has maintained its guidance for underlying earnings at around £8.2 billion, reflecting a strategic focus on long-term sustainability over immediate revenue gains.