BT Group PLC (LSE:BT.A) shares slumped nearly 9% in early trading after the telco unveiled plans to axe up to 55,000 jobs alongside a fall in pre-tax profits and an unchanged dividend.
The FTSE 100-listed firm is to cut between 40,000 to 55,000 jobs - up to 42% of its current 130,000 strong workforce - by the end of the decade as it looks to reduce costs and become a “leaner business with a brighter future.”
The telco said the job reductions, which include both employees and third-party contractors, would be completed between 2028 and 2030.
In a statement, Philip Jansen, BT chief executive said: “By continuing to build and connect like fury, digitise the way we work and simplify our structure, by the end of the 2020s BT Group will rely on a much smaller workforce and a significantly reduced cost base.”
The news came as the company unveiled marginally lower revenue and a drop in profitiability with growth in Openreach more than offset by declines elsewhere.
In the year to March 31, 2023, BT reported revenue of £20.68bn, down 1% from £20.85bn a year prior and a 12% drop in reported pre-tax profit to £1.73bn from £1.96bn due to increased depreciation from network build.
Adjusted EBITDA of £7.9bn was up 5% due to growth in Openreach and Consumer offset by a decline in Enterprise.
A final dividend of 5.39p was paid bringing the full-year dividend to 7.70p, flat year-on-year.