BT staff count falls to 90,000 as profits hit £1.1 billion

BT has cut its workforce to 90,000 employees.

The telecommunications group announced on Thursday that its headcount dropped by 7,731 people during the six-month period ending in September. This figure excludes staff in the company's international division, which is being spun off into a joint venture with Verizon. Two years ago, BT employed approximately 130,000 people when contractors were included in the total.

Most of the reductions occurred within the Openreach division. The company is slowing its fiber network expansion to align with a plan to remove billions of pounds in expenses by 2030. Despite the staff cuts, pre-tax profit rose by 12% compared to the same period last year. The company earned £1.1 billion in the first half of the year.

Shares traded on the London Stock Exchange jumped as much as 6% during early trading on Thursday. The stock reached a five-year high, placing it among the top performers in the FTSE 100 index.

Allison Kirkby, who became chief executive in February 2024, has led the cost-cutting effort. She announced this year that the company would raise its savings goal from £3 billion by 2029 to £3.7 billion by 2030. BT now expects its total employee count to settle between 75,000 and 80,000 by the end of the decade. This target is at the lower end of the 75,000 to 90,000 range set in 2023, a period when the firm noted that artificial intelligence could eliminate roughly 10,000 roles.

Kirkby's compensation and bonus package more than doubled last year to reach £5.6 million. This is the largest pay award for a BT leader in over a decade. Since she took the role, company shares have risen by more than 70%. Her tenure also saw the completion of a £400 million acquisition of competitor TalkTalk, which is currently facing financial difficulties.

On Thursday, Kirkby said she could not share specific details about TalkTalk's future because the deal is still under regulatory review. The Salford-based company employs about 900 staff members. The acquisition is described as a rescue deal that secures telecommunications services for 2.5 million households and public sector clients, including hospitals and schools.

Virgin Media O2, which also wanted to buy TalkTalk, criticized the transaction. The rival called the deal a stitch-up that would strengthen BT's dominant market position. BT is the largest broadband provider in the United Kingdom, holding an estimated 30% market share according to Enders Analysis. Openreach, which BT owns, is the primary network supplier for TalkTalk.

BT told investors on Thursday that demand for the full-fiber network operated by Openreach is at a record high. The network has been installed in 24.1 million homes so far, with a goal of reaching 25 million by year's end. Virgin Media O2 announced earlier this week that it plans to cut thousands of jobs as part of an £800 million savings drive.

The next major step for BT is the completion of the TalkTalk regulatory review. The company will continue its cost-saving measures to meet the £3.7 billion target by 2030.