BT slashes workforce as Talktalk takeover adds to turnaround challenge

BT cut its workforce by 11 per cent over the past year as chief executive Allison Kirkby continues a cost-cutting overhaul, helping lift pre-tax profit despite weak revenue growth. The company must also integrate TalkTalk’s consumer and wholesale businesses after rescuing the struggling broadband provider from administration, adding to the challenges facing its turnaround.

BT had 90,000 staff, including contractors, and reported £312m in annualised savings for the six months to September. Pre-tax profit rose 12 per cent to £1.1bn on revenue up one per cent to £8.8bn, while cash left after operating and investment costs fell 59 per cent to £236m and debt rose by £1bn to £21bn. The TalkTalk deal is expected to cost about £400m this financial year and covers services used by 2.5m customers; BT aims to reduce its workforce to 65,000–70,000 by 2030, excluding international operations.