BT has cut more than 11,700 jobs over the past year, with leadership warning that further cuts are planned. The reductions are part of a cost-cutting drive that has shrunk the company's UK workforce, including both direct staff and contractors, by 11% in the last 12 months.
The exact number of job losses stands at 11,712 since this time last year. Over 7,700 of those roles were cut in the last six months alone.
Workforce targets and financial results
BT's current workforce now stands at 90,000, but Chief Executive Allison Kirkby plans to reduce the total to between 65,000 and 70,000 by 2030.
Pre-tax profits rose 12% to £1.1 billion for the six months to September as a result of the job cuts. Revenue, however, increased only 1% to £8.8 billion.
Savings and financial pressures
The transformation programme has already delivered £312 million in annual savings as the firm looks to simplify its business and cut operating costs.
While short-term profits have been helped by the role reductions, the company's finances remain under pressure. Normalised free cash flow, the money remaining after running and investing in the business, fell 59% to £236 million. Debt has risen by £1 billion to £21 billion.
Outlook and TalkTalk rescue
Ms Kirkby said the broadband company was making strong progress despite the challenging market. She noted that the UK-centric strategy and transformation is clearly delivering, with £312 million of annualised savings achieved in the first half as the firm continues to simplify and modernise.
The company maintained its full-year forecasts and increased its interim dividend by two per cent to 2.5p per share. Despite restructuring, BT recently stepped in to rescue rival TalkTalk out of administration. The buyout is expected to cost BT around £400 million this financial year, and it is now responsible for maintaining services for 2.5 million TalkTalk customers.
