BT announces plan to cut up to 55,000 jobs by 2030
In a recent announcement, BT revealed plans to cut up to 55,000 jobs by 2030, a move aimed at reducing their workforce by nearly a quarter. The company is expected to target managerial and back-office roles, as well as parts of its global services unit.
Job Cuts Breakdown
The majority of the job cuts will take place in the UK, with around 23,000 jobs expected to be cut. The other 32,000 jobs will be cut from the company’s global workforce. The cuts are a result of a three-year restructuring plan that aims to save BT roughly £2.5bn.
The telecoms giant hopes that these job cuts will help to fund its £12bn investment in ultrafast broadband and 5G. Philip Jansen, BT’s chief executive, believes that the restructuring will help the company “become more competitive and drive efficiencies in networks and IT,” and ultimately, “deliver sustainable, long-term value to our shareholders.”
Criticism of the Job Cuts
While the cuts are aimed at saving the company money and investing in future technologies, they have not been without criticism. The Communication Workers Union (CWU) has described the cuts as “short-sighted” and “a betrayal of the loyal and skilled workforce who are driving BT’s success.”
The union also warned that such a large-scale reduction in the workforce could have serious implications for the UK’s digital infrastructure. Furthermore, Labour’s shadow business secretary, Rebecca Long Bailey, echoed these concerns, warning that “cuts of this scale only show the short-sightedness and mismanagement of BT.”
Potential Impact on Employees
For those employed by BT, the announcement will undoubtedly be worrying. However, the company has stated that it will aim to mitigate the effects of these job cuts as much as possible. In a statement, BT suggested that its workforce could be reduced through “natural attrition,” voluntary departures, and redundancies. The company has also promised to support affected employees with retraining and redeployment opportunities.
According to reports, BT employees who will be affected by the job cuts have already been notified. The company has promised to begin consultations with unions and employees immediately.
Future Plans for BT
The job cuts announcement is part of BT’s wider efforts to transform the company. The restructuring plan also includes a shift towards digital services, as well as the sale of BT’s St Paul’s headquarters in London.
BT has also recently announced plans to invest in ultrafast broadband and 5G, with the company aiming to cover 25 million homes with full fibre broadband by 2026. Furthermore, BT hopes to be one of the first companies to launch a 5G mobile network in the UK.
Conclusion
BT’s announcement of job cuts has been met with mixed reactions, with concerns about the potential impact on the UK’s digital infrastructure. However, the telecoms giant insists that the restructuring will ultimately benefit the company and its shareholders. It remains to be seen how the job cuts will be implemented, and what the long-term implications for BT will be.
