BT slashes sales outlook and axes another 2,000 jobs in ongoing overhaul

The group reported a 10% drop in pre-tax profits to £967 million for the six months to September 30 as revenues fell 3%.

Holly Williams
Thursday 07 November 2024 08:08 GMT
Telecoms giant BT has cut its annual sales outlook and revealed another 2,000 jobs have gone under its ongoing plan to slash costs (PA)
Telecoms giant BT has cut its annual sales outlook and revealed another 2,000 jobs have gone under its ongoing plan to slash costs (PA) (PA Wire)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Telecoms giant BT has cut its annual sales outlook and revealed another 2,000 jobs have gone under its ongoing plan to slash costs.

The group reported a 10% drop in pre-tax profits to £967 million for the six months to September 30 as revenues fell 3% to £10.1 billion amid a “competitive retail environment”.

It now expects annual revenues to fall by 1% to 2%, blaming trading outside the UK and reductions to sales of less profitable kits, while it also flagged a weaker performance in the corporate and public sector.

BT had previously guided for revenues to rise by up to 1% in 2024-25.

We have accelerated the modernisation of BT Group in the first half of the year

Allison Kirkby, BT

But the company kept its underlying earnings guidance unchanged, for around £8.2 billion.

The firm also laid bare the pace of its previously announced jobs cull to slim down to between 75,000 and 90,000 workers by 2030 as it looks to shave billions off its cost base.

It said it slashed its workforce by 2,000, or 4% year-on-year, to 118,000 and saved £433 million in annual costs in the first half alone.

Allison Kirkby, BT’s recently appointed chief executive, said: “We have accelerated the modernisation of BT Group in the first half of the year.”

She said alongside widespread cost cutting, the group was also investing heavily and ramping up its full-fibre roll out.

“Our nationwide full-fibre rollout has set new records, now reaching more than 16 million premises, and we have further extended our industry-leading take-up rate to 35%.”

She said the group had also expanded its 5G network to cover 80% of the UK population.

“The accelerated modernisation of our operations, combined with a focus on connecting the UK, puts us in a strong position,” she added.

In May, the group announced a further £3 billion in cost cuts over the coming years, as Ms Kirkby expanded on plans to turn around the struggling telecoms giant.

Ms Kirkby said at the time that the company had hit its initial target of £3 billion in savings a year before schedule, and said it would slash the same sum by 2029.

She took over the top role in February with aims to turn the business around and double down on cost-cutting efforts and aggressively roll out its full-fibre broadband network across the UK.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in