BT shares slump on plans to cut 55,000 jobs by 2030

Shares in BT Group slumped as the UK telecoms giant said it planned to axe up to 55,000 jobs by 2030 and become a "leaner" business.

The news came as it reported adjusted core earnings up 5% to £7.9bn. On a pre-tax basis BT posted a 12% fall in profit to £1.7bn due to increased depreciation from network build and specific items, partially offset by adjusted EBITDA growth.

Chief Executive Philip Jansen said after completing its fibre roll-out, digitising the way it worked and simplifying its structure, it would rely on a much smaller workforce and significantly reduced cost base by the end of the 2020s. This means BT's total labour force, including contractors, would be cut to around 75 - 90,000 from the current 130,000 by 2030.

"New BT Group will be a leaner business with a brighter future," he said. Shares in the firm fell by 9% in response.

Revenue was £20.7bn, down 1% with the growth in Openreach more than offset by decline in the other units, the company said on Thursday. Free cashflow fell 5% to £1.3bn, at the lower end of its guidance, due to increased cash capital expenditure.

The group said it expected to grow both revenue and core earnings on a pro forma basis this year.

Reporting by Frank Prenesti for Sharecast.com