BT plans to cut 55,000 jobs by 2030 due to the arrival of fibre and AI.

BT Group to Cut Up to 55,000 Jobs by 2030

Transformation Plan and New Technologies

BT Group, the largest broadband and mobile provider in the UK, is set to cut up to 55,000 jobs, including contractors, by 2030. This represents over 40% of its workforce, as the company completes its fibre roll-out and adapts to new technologies such as AI. Under the leadership of CEO Philip Jansen, BT has been working through a transformation plan to build a national fibre network and roll out high-speed 5G mobile services.

Pro Forma Revenue and Core Earnings Growth

BT reported pro forma revenue and core earnings growth for the first time in six years in the year to the end of March. However, 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. Jansen said that after completing the fibre roll-out, digitising the way it worked, adopting AI, and simplifying its structure, BT would rely on a much smaller workforce and significantly reduced cost base by the end of the 2020s.

Accelerated Job Cuts

BT’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, it said. Some 30,000 of its current employees are contractors. Jansen said BT’s ongoing job cuts would accelerate as it completes its fibre build and switches off 3G. BT’s rival Vodafone said on Tuesday it would cut 11,000 jobs worldwide to try to restore its competitive edge.

AI and Better Customer Service

Jansen said around 10,000 fewer network engineers would be needed to run digital networks, while technologies like automation and AI would replace another 10,000. There were “huge opportunities” to use AI, he said, adding that generative AI large language models would be a leap forward that rivalled the arrival of the smartphone. BT would use AI to deliver better customer service, driven by customer needs, he said, as well as capturing other business opportunities.

Investment and Targets

BT’s networks arm, Openreach, reaffirmed its target to reach 25 million premises with ultra-fast full-fibre connections by the end of 2026. It has been investing heavily to build out its fibre network faster than rival Virgin Media O2 and smaller “alt nets”. BT said it expected to grow both revenue and core earnings on a pro forma basis this year.