BT to cut up to 55,000 jobs by 2030 | CNN Business

London
CNN
—

BT Group plans to cut up to 55,000 jobs over the next five to seven years as it makes greater use of technology to cut costs and simplify its business.

The UK telco said on Thursday that its total workforce would fall to between 75,000 and 90,000 in 2028-2030, from 130,000 today. This includes BT employees and third party supplied contractors.

The company’s shares fell 8% in London.

“By continuing to build and connect like a fury, digitizing the way we work and simplifying our structure, by the end of the 2020s BT Group will have a much smaller workforce and a significantly reduced cost base.” CEO Philip Jansen said in a statement. . “The new BT Group will be a leaner business with a brighter future.”

Earlier this week, Vodafone ( VOD ), once the world’s largest mobile telecommunications group, said it would cut 11,000 jobs, or about 11% of its workforce, over three years. The company also unveiled a turnaround plan to revive its poor fortunes under new CEO Margherita Della Valle.

According to McKinsey, European telecommunications companies have performed particularly poorly over the past decade, delivering lower returns to shareholders than their American peers.

BT said revenue fell 1% to 20.7 billion pounds ($25.8 billion) in the year to March, with growth at Openreach, its fiber broadband network, “more than offset” by declines in other businesses. Its adjusted earnings rose 5% to 7.9 billion pounds ($9.8 billion).