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.
