BT Group, Britain’s largest broadband and mobile provider, is set to cut up to 55,000 jobs by 2030, potentially over 40% of its workforce. This is part of the company’s transformation plan to build a national fibre network and roll out high-speed 5G mobile services.
The job cuts will accelerate as BT completes its fibre build and switches off 3G. Around 10,000 fewer network engineers will be needed to run digital networks, while technologies like automation and AI will replace another 10,000.
BT reported pro forma revenue and core earnings growth for the first time in six years in the year to the end of March, but the cost of transforming the business, and the hit to its free cash flow took a toll, sending its shares down 7% in morning trade.
The group’s total number of workers would reduce from 130,000 to between 75,000 and 90,000 by its 2030 financial year at the latest. BT will use the proceeds of the British government’s new tax expensing to invest in its network build and on connecting customers to fibre.
The Communication Workers Union (CWU) said the job cuts were “no surprise” given the coming changes in infrastructure and technology. Talks between BT and the CWU are necessary to ensure a smooth transition on that front said the union, adding that BT should aim to keep direct jobs and cut contractors.