BT to shed 55,000 jobs by 2030

UK telecommunications company announces cuts as its fibre roll-out programme reaches its target in the next seven years

BT announced 55,000 job losses over the next seven years. Bloomberg

The British telecoms company BT is to reduce its workforce by 55,000 by the end of the decade, as the company's fibre roll-out programme reaches its conclusion and some other tasks will be performed by artificial intelligence.

The job cuts include 30,000 contractors specifically employed in the building of the fibre-optic network.

"It's a rolling programme, but it's a five to seven-year landing zone," said BT's chief executive, Philip Jansen.

He said that BT "will be a leaner business with a brighter future" after the completion of the fibre roll-out programme and the adoption of AI technologies, within a simplified corporate structure.

The job losses, which represent about 40 per cent of BT's current workforce, come just days after a similar move by rival Vodafone, which announced plans to cut 11,000 jobs over three years.

Ringing up earnings

BT's latest numbers, meanwhile, show a 5 per cent increase in adjusted core earnings to £7.9 billion ($10 billion).

But an increase in capital expenditure meant that BT's free cash flow fell by 5 per cent to £1.3 billion, which was at the lower end of analysts' expectations.

As such, BT shares fell more than 9 per cent in morning trade in London on Thursday.

Nonetheless, the company networks operation, Openreach, reaffirmed its target to install ultra-fast broadband connections in 25 million properties by the end of 2026.