BT has announced plans to cut costs by an additional £700 million over the next four years, as the telecoms giant reported flat full-year earnings and declining revenues.
The company said it was raising its cost-saving target to £3.7 billion, up from £3 billion previously, and extending its restructuring programme by one year to the end of March 2030.
The restructuring plan, launched in May 2024, is now expected to cost £1.4 billion in total, compared with an earlier estimate of £1 billion. BT had previously announced it would cut up to 55,000 jobs worldwide by 2030.
BT has already achieved annual savings of £1.5 billion as part of the overhaul, including £580 million in the 12 months to March 31. The group's workforce shrank by a further 7% to 108,000 staff over the year.
Details of the additional cuts emerged as BT reported underlying earnings remaining flat at £8.23 billion for the year to March 31. Underlying revenues fell 4% to £19.65 billion, with UK service revenues down 1% despite price rises.
On a statutory basis, pre-tax profits rose 8% to £1.44 billion.
The group said revenues are set to decline further in the year ahead, forecasting a range of £19 billion to £19.5 billion, while earnings are expected to edge higher to between £8.2 billion and £8.3 billion.
UK service revenues are also predicted to come under further pressure, with BT forecasting a range of £15.1 billion to £15.4 billion for 2026-27, against the £15.4 billion reported in the past year.
Openreach has been hit by customer losses in recent years as low-priced competitors, known as retail altnets, have entered the market, such as CityFibre.
However, the firm said its consumer division returned to customer growth across broadband, mobile and TV during the year.
Chief executive Allison Kirkby said: “We have delivered on our financial guidance and we are transforming ahead of plan, offsetting headwinds while successfully competing.”
Ms Kirkby has also been considering a possible stake sale in its struggling international business, with recent reports suggesting it is reviving these plans to refocus on its domestic UK market.
BT has been gradually reducing its overseas business as part of wider cost-cutting plans, recently selling off its troubled Italian business and previously agreeing the sale of its Irish wholesale and enterprise business unit.
