BT boss warns of further job loss ‘pain’ as part of £3bn cost-cutting drive

The BT boss has warned that staff will face more job losses and that everyone should share ‘the pain’ of cost cutting.

Philip Jansen said the FTSE 100 telecom giant would “leave no stone unturned” to ensure it “would be the most efficient organisation.”

He said: “If we continue to automate and use technology to make the business more efficient, we can reduce costs. Of course, that inevitably means that some jobs will not exist in the future.

“Everyone will have to share the pain of cost cutting. “Literally, all 100,000 people in BT need to look at the costs they can influence.”

But Jansen, 55, insisted there would be no ‘knee jerk’ restructurings, which he said would ’cause a tremendous amount of pain for our staff’, adding: ‘We are looking to do this in a sensible, controlled manner. way to do it.’

The group yesterday announced plans to save £3bn by the end of 2025, up from its previous target of £2.5bn as it struggled with higher inflation and rising energy prices. Jansen also said BT needed to take additional cost-cutting measures to increase its cash flow at a time when it is building ‘like mad’ to expand its fiber broadband network across the UK.

Shares fell 8.9 percent, or 11.35p, to 116.4p, their lowest level in two years. The chief executive’s comments about more job cuts drew criticism from the Communication Workers Union (CWU), which recently led a number of strikes by BT workers, including 999 call handlers amid a wage dispute.

A spokesperson said: ‘BT’s speech about further cost savings is worrying our members at a time when morale is already at an all-time low.’

In its half-year results, the company reported that the customer base for its Openreach broadband network shrank by 89,000 in the second quarter, after an increase of 29,000 last year. It added that 40,000 households had not completed their broadband connection in time due to industrial action.

BT also raised its spending outlook for the current year from £4.8 billion to £5 billion as it rushed to build out its fiber network while tackling rising prices. The group reported an 18 percent decline in pre-tax profits to £831 million for the six months to the end of September, despite a 1 percent increase in sales to £10.4 billion as revenue growth from consumer EE and broadband offset lower spending. of business compensated. customers.

Telecom analyst Paolo Pescatore said BT could also face a backlash if it raises its prices next year.

‘While [price hikes] may seem justified to help fund the rollout of the network, but it won’t sit well with paying households who are all looking to tighten their belts,” he said, adding that the company needed to focus on the “ongoing challenges” in its business. activities.