BT shares slump on plans to cut 55,000 jobs by 2030
By Frank Prenesti
Date: Thursday 18 May 2023
(Sharecast News) - Shares in BT Group slumped as the UK telecoms giant said it planned to axe up to 55,000 jobs by 2030 and become a "leaner" business.
The news came as it reported adjusted core earnings up 5% to £7.9bn. On a pre-tax basis BT posted a 12% fall in profit to £1.7bn due to increased depreciation from network build and specific items, partially offset by adjusted EBITDA growth.
Chief Executive Philip Jansen said after completing its fibre roll-out, digitising the way it worked and simplifying its structure, it would rely on a much smaller workforce and significantly reduced cost base by the end of the 2020s. This means BT's total labour force, including contractors, would be cut to around 75 - 90,000 from the current 130,000 by 2030.
"New BT Group will be a leaner business with a brighter future," he said. Shares in the firm fell by 9% in response.
Revenue was £20.7bn, down 1% with the growth in Openreach more than offset by decline in the other units, the company said on Thursday. Free cashflow fell 5% to £1.3bn, at the lower end of its guidance, due to increased cash capital expenditure.
The group said it expected to grow both revenue and core earnings on a pro forma basis this year.
Reporting by Frank Prenesti for Sharecast.com
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