BT Group, 55,000 fewer jobs by 2030 with artificial intelligence – Corriere.it

British telephone group BT announced on May 18 that will cut up to 55,000 jobs (including around 30,000 contractors) by 2030. In fact, Britain’s largest broadband and mobile provider will reduce its workforce by more than 40% as it completes its roll-out of fiber and adapts to new technologies such as artificial intelligence. As Reuters reports, the total number of group employees will therefore be reduced from 130,000 to 75,000/90,000 people at the latest by the financial year 2030. By that date, most of the construction of the fiber optic network will be completed.

Last week, BT reported revenue and earnings growth for the first time in six years in the year ended at the end of March, but the cost of transforming the company and the blow to free cash flow had a negative impact, causing the shares to fall more than 8% in early trading (on May 18th -10% has been reached). The company now expects to rely “on a significantly reduced workforce and costs”, Chief Executive Philip Jansen said in a statement. to make “the new BT Group a leaner company with a brighter future,” he added. The news is not a bolt from the blue. In fact, the telephony giant had already expressed its intention to make drastic personnel cuts in the face of the difficult economic situation in the United Kingdom, between Brexit and the economic crisis linked to the post-pandemic and the war.

Regarding full-year results, Jansen said BT made good progress while operating in an “extraordinary macroeconomic environment.” The company met market expectations with a 5% increase in adjusted core earnings to £7.9 billion. But cash flow fell 5% to £1.3bn, on higher capital spending. Forecasts for free cash flow for 2024 are also lower than analysts’ expectations. “We expect a negative share price reaction due to lower cash flow,” Barclays said.