: BT sets plan to cut 55,000 jobs by end of decade

by | May 18, 2023 | Stock Market

U.K. telecoms provider BT Group set plans to cut up to 55,000 jobs by the end of the decade as it completes the rollout of high-speed broadband. BT Group
BT.A,
-6.99%
says it is aiming to reduce its total labor force, which includes contractors, from 130,000 down to between 75,000 to 90,000 by fiscal 2028 to fiscal 2030.

“It is not surprising that in an inflationary and high-interest rates environment where costs are higher and increased expenses for servicing debt, telecommunication companies are employing technology to decrease costs wherever possible,” said Albie Amankona, analyst at Third Bridge.  U.K.-based mobile operator Vodafone Group
VOD,
+0.45%
on Tuesday said it would cut 11,000 jobs over three years. BT said revenue and adjusted EBITDA for its fiscal year was in line with its outlook but normalized free cash flow of £1.33 billion was at the lower end of guidance due to spending on building the Openreach fiber network. For fiscal 2024, it’s targeting revenue and EBITDA growth on a pro forma basis; and normalized free cash flow between £1 billion and £1.2 billion. BT shares dropped 8% in early trade.

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