BT Cuts Nearly 8,000 Jobs as Cost-Saving Drive Pays 2026

BT has cut almost 8,000 jobs since the end of March as part of a sweeping cost-saving programme, the telecoms group revealed. The workforce reduction helped the company increase pre-tax profit by 12% to £1.1bn in the six months to the end of September.

The cuts come as BT pushes to slash billions in costs by 2030, with most reductions occurring at its Openreach division as the buildout of its fibre network slows. Shares surged as much as 6% to a five-year high on the news, making BT one of the FTSE 100's best performers.

BT's Workforce Shrinks by 7,731 to 90,000

BT's headcount fell by 7,731 to 90,000, excluding staff in its international business, which is being spun out in a joint venture with Verizon. Two years ago, the company employed about 130,000 people including contractors.

The reduction is part of a broader plan to simplify the business and reduce costs. BT now expects its headcount to end the decade at between 75,000 and 80,000, towards the lower end of its previous estimate of 75,000 to 90,000 set out in 2023.

At that time, BT said the introduction of AI across its business could eliminate the equivalent of about 10,000 roles. The company has been investing heavily in automation and digital tools to streamline operations.

Openreach and Fibre Network Slowdown

Most of the job cuts have been at Openreach, BT's infrastructure division, as the buildout of its fibre network slows. Openreach has been rolling out full-fibre broadband across the UK, but the pace of construction is now easing as it reaches more challenging areas.

The slowdown in network build has reduced the need for contractors and engineering staff. BT has also been reducing duplicative roles as it simplifies its internal structure.

Cost Savings Target Raised to £3.7bn by 2030

CEO Allison Kirkby, who took the helm in February 2024, has overseen the cost-cutting programme. This year she raised BT's savings target from £3bn by 2029 to £3.7bn by 2030.

The increased target reflects the company's confidence in its ability to find further efficiencies. Kirkby has emphasized a leaner, more agile organisation focused on customer service and network quality.

BT's shares rose to a five-year high on the news, signalling investor approval of the strategy. The company's pre-tax profit of £1.1bn for the half-year represents a 12% increase year on year.

• BT cut 7,731 jobs since March, reducing headcount to 90,000 (excluding international business).
• Pre-tax profit rose 12% to £1.1bn for the six months to September.
• Most cuts occurred at Openreach as fibre network buildout slows.
• Savings target increased to £3.7bn by 2030, up from £3bn by 2029.
• Headcount expected to end the decade at 75,000–80,000, down from 130,000 two years ago.

Why the Job Cuts Matter for the Telecom Sector

BT's job cuts reflect a wider trend in the telecom industry, where companies are under pressure to reduce costs while investing in next-generation networks. The slowdown in fibre buildout and the rise of AI-driven automation are reshaping workforce needs.

For investors, the cuts signal a focus on profitability and shareholder returns. For employees and communities, they raise questions about job security and the pace of digital infrastructure rollout.

The government has been pushing for faster broadband deployment, but BT's slower build could impact targets. The company must balance cost-cutting with the need to maintain service quality and network reliability.

What to Watch Next for BT

BT's ability to sustain its cost-cutting momentum while delivering on network investments will be key. The company faces competition from alternative fibre providers and must navigate regulatory changes.

Investors will look for further details on the Verizon joint venture and the impact of AI on operations. The next earnings report will show whether the profit boost is sustainable.

As BT continues to streamline, the focus will be on how it reinvests savings into growth areas like 5G and customer experience. The job cuts, while painful, are part of a broader strategic shift. The background to this story is set out in Jaguar Land Rover to Cut 4,000 Jobs in Cost-Saving Drive. A related thread runs through Netflix Layoffs: Streaming Giant Cuts Nearly 1,000 Jobs. Earlier coverage in Adani Pays No Tax Despite $1bn Revenue from Queensland Coalmine shows how the argument developed.

For a deeper look at how UK political decisions influence corporate strategy, see our analysis of the Tories' plan for sweeping cuts beyond £47bn. Such policies could shape the operating environment for telecoms and other sectors. A closer look at the same subject appears in Adani Pays No Company Tax Despite $1bn Coal Revenue. Anyone following the wider picture can start with UK Aid Cuts Slash Bilateral Support to African Countries by 90%. The same theme surfaces in UK Aid Cuts Slash Bilateral Support to African Nations by 90%, which takes a different angle.

Understanding these political and economic shifts is crucial for investors and business leaders. The Grand Goldman business section provides ongoing coverage of these developments. Context on how this played out before sits in Trump Pushes RFK Jr to Slash Vaccines More Aggressively.