BT Group Plc has announced its plan to significantly reduce its workforce, cutting up to 42% of employees and contractors by the fiscal year ending in March 2030. The total number of workers, including those employed by third parties on BT's behalf, will drop from approximately 130,000 currently to a range between 75,000 and 90,000.
This move comes as part of Chief Executive Officer Philip Jansen's ongoing strategy to shrink the workforce while increasing profit. Over the past five years under Jansen's leadership, BT Group has been targeting savings of £3 billion annually by the end of 2025.
In response to this announcement, shares fell by 1.5% on Wednesday but remain up substantially for the year at a total increase of around32%.
The telecoms company is also seeking additional benefits through digitizing its business operations and leveraging new technology such as artificial intelligence (AI). This transition comes after BT reported a pre-tax profit decline of12%, dropping down to £1.7 billion for their fiscal year concluding in March.
Jansen commented on these changes stating that "by the endo fthe2020s,BTGroupwillrelyonamuchsmallerworkforceandasignificantly reduced cost base." These major job cuts follow similar moves within industry rivals like Vodafone which recently announced plans for11 ,000jobcuts overth enextthreeyears—the largest reduction in their history.