Even the big British telephone company British Telecom prepares for a major job cutsjust as announced by Vodafone. But if the mobile operator has announced 11,000 layoffs, the former monopolist expects 55,000 by 2030, i.e. when the work to build the fiber network is finished. The plan which is the result, on the one hand, of crisis that is affecting the telecommunications sector and therefore of particularly weak results announced by BTwhich is on the stock market has lost about 6%.
The personnel downsizing plan that concerns 55,000 positions out of 139,000 employees undertaken by the British company, to be implemented by 2028-2030.
BT closed 2023 with a pre-tax profit of 1.7 billion less than the expected £1.9bn, while net profit rose to £1.9bn, after benefiting from massive tax deductions for the sale of BT Sport, which brought the effective tax rate to around 10% from 35% in 2022. Revenue fell 1% to £20.7bn.
Adjusted cash flow down 5% to $1.3 billion of pounds as a result of the investments in the Openreach fiber networkwhich will replace the old copper network, bringing ultra-broadband to 25 million homes by 2026.
“By the end of the decade BT Group will rely on a much smaller workforce and a significantly reduced cost base. The new BT Group will be a leaner company with a better future – explained the CEO Phillip Jansen in the last four years the group focuses on cost cuttingwhich has generated 1.2 billion in savings over the past three years”.