BT to axe up to 55,000 jobs by 2030 as fibre and AI arrive
Britain’s biggest broadband and mobile provider, BT Group, has announced “drastic” job cuts, amounting to up to 55,000 by the end of the decade – as it completes its fibre roll-out and adapts to new technologies such as Artificial Intelligence (AI).
The layoffs could affect over 40% of BT’s workforce, which currently employs roughly 130,000 staff, including contractors, the AFP News Agency reported. It’s a cost-cutting measure amid growing expenses and slim margins.
“It’s drastic but it’s not overly surprising,” AFP quoted Hargreaves Lansdown analyst Matt Britzman as saying. It comes after British mobile phone giant Vodafone recently announced plans to lay off 11,000 employees, or one-tenth of its workforce, over three years.
Following the job cuts in the next five to seven years, BT will have around 75,000 to 90,000 employees, the company said in a statement.
BT would rely on a much smaller workforce and a significantly reduced cost base by the end of the 2020s, said chief executive Philip Jansen, adding the “new BT Group will be a leaner business with a brighter future.”
Over the last few months, scores of tech companies worldwide have laid off a significant number of employees. And one of the major reasons behind the move is inflation which has taken the world economy for a downfall.
Furthermore, BT on Thursday also announced the company’s net profit rose 50% to $2.4 billion in its fiscal year to March. But performance-wise, it needs to up its game.
Following the news of layoffs, investors seemingly went nervous. BT’s share price fell almost 9% in morning deals on the rising London stock market.