BT Group, Britain’s biggest broadband and mobile provider, has announced plans to axe 55,000 jobs by the end of the decade in order to become a leaner business.
The announcement came after it met market expectations with a 5 per cent rise in full-year adjusted core earnings of £7.9billion, after growth in networks and consumer offset a decline in enterprise.
According to reports, around 30,000 of the roles cut will affect third-party contractors, including fibre engineers and maintenance workers.
The group, which has been mulling mass job cuts for some time, is aiming to cut its costs by £3billion by 2025. The company has already managed to shave £2.1billion off its costs.
The job cuts are part of a wider restructuring plan at BT, which is also looking to sell its directories business Yell and its stake in Openreach.
BT’s CEO, Philip Jansen, said the job cuts were “a difficult decision, but one that is necessary to ensure BT’s long-term success.”
“We are facing a number of challenges, including increasing competition and the need to invest in new technologies,” he said. “These changes will help us to become a more agile and efficient business.”
The job cuts have been met with anger from trade unions, who have accused BT of “betraying” its employees.
The Communication Workers Union (CWU) said the job cuts were “a hammer blow to our members and their families.”
“This is a dark day for BT and for our country,” said CWU general secretary Dave Ward. “BT is a vital part of our economy and these job cuts will have a devastating impact on communities across the UK.”
It remains to be seen how the job cuts will affect BT’s customers. However, it is likely that they will lead to higher prices and a decline in service.
The job cuts are a sign of the tough times facing the telecoms industry. As competition intensifies, companies are under pressure to cut costs and improve efficiency. This is likely to lead to more job losses in the sector in the years to come.
BT Group plc (formerly British Telecom)
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