BT Group has announced plans to cut an additional £3 billion in costs by 2029, following the appointment of new Chief Executive Allison Kirkby in February. The company, aiming to modernize its operations and increase profitability, previously met a £3 billion cost-cutting goal ahead of schedule. This decision comes amid a challenging period for BT, which saw a 31% drop in pre-tax profits to £1.18 billion for the past year, despite a 1% rise in revenue to £20.8 billion.
Kirkby, focusing on the UK market, has not ruled out selling some of BT’s international business to meet these targets. As part of the cost-cutting measures, BT plans to reduce its workforce from 120,000 to a range of 75,000 to 90,000 by 2030. Additionally, the company reported losing 491,000 Openreach customers in the year ending March 31, 2023.
Despite these challenges, BT's shares rose by 9% following the announcement, and the company plans to increase its dividend to 8p per share, indicating confidence in future cash flow improvements.