BT Plans £3 Billion in Cost Savings

BT Group CEO Allison Kirkby plans to achieve £3 billion in annual cost savings in the next five years. In that period, the company will continue modernization and assess various options for its business activities outside the UK.

Speaking in her first annual results call since taking over at the operator earlier this year, Kirkby said that 80% of new reductions would come from large projects such as shutting down legacy services, scaling the use of shared platforms across the business, and measures to simplify the customer experience. The latest round of cuts is expected to cost £1 billion to implement.

She also noted a focus on BT’s core UK market, with the company exploring options to optimize our global business. Kirkby added the company achieved its previous target of £3 billion in savings a year ahead of schedule and is still aiming for a previously stated target of reaching a headcount of between 75,000 and 90,000 in 2029. At the end of March, it had 120,000 staff, down 10,000 from the same point in 2023.

In its fiscal 2024 results, BT booked a non-cash goodwill impairment of £488 million for its Business division attributed to a decline in profitability over recent years. Revenue was flat at £20.8 billion, with profit down 55% to £855 million, attributed to one-off items including the impairment to its Business division. Kirkby noted the company is moving to the next phase of transformation, with the operator beyond its peak capex spend on fiber.