BT plans to cut costs by a further £700m over next four years
BT has revealed plans to cut costs by a further £700 million over the next four years as it reported flat full-year earnings and falling revenues.
The telecoms giant said it was upping its cost saving target to £3.7 billion, from £3 billion previously, and extending its restructuring programme by a year to the end of March 2030.
It said the restructuring plan launched in May 2024 would now cost it £1.4 billion in total, up from £1 billion previously expected, with the firm having previously announced it would cut up to 55,000 jobs worldwide by 2030.
BT has already delivered annual savings of £1.5 billion as part of the overhaul, including £580 million in the past 12 months to March 31, with the group’s workforce shrinking by another 7% to 108,000 staff over the year.
Details of the extra cuts came as it reported underlying earnings remaining flat at £8.23 billion in the year to March 31, as underlying revenues fell 4% to £19.65 billion, with UK service revenues down 1% despite price rises.
On a statutory basis, pre-tax profits rose 8% to £1.44 billion.
The group said revenues were also set to decline further over the year ahead, forecasting a range of £19 billion to £19.5 billion, while earnings are expected to edge higher to between £8.2 billion to £8.3 billion.
UK service revenues are likewise predicted to come under further pressure, with BT forecasting a range of £15.1 billion to £15.4 billion for 2026-27, against the £15.4 billion reported in the past year.
Openreach has been hit by customer losses in recent years as low-priced competitors – so-called retail altnets – have entered the fray, such as CityFibre.
But the firm said its consumer division returned to customer growth across broadband, mobile and TV during the year.
Allison Kirkby, Chief Executive, said: “FY26 (full year 2026) was another year of strong delivery against BT’s strategy.
"We are building the UK’s digital backbone even faster and further, connecting the country like no one else and accelerating our transformation - and we know there is much more we can do, as we create a better BT for all of us.
“Our record-breaking Openreach full fibre build hit its upgraded target and today reaches more than two thirds of UK homes and businesses, keeping us well on track for our 25 million milestone by the end of December. We extended our mobile leadership further, with EE winning best mobile network in three separate awards, bringing 5G+ to 73% of the population."
“We have delivered on our financial guidance and we are transforming ahead of plan, offsetting headwinds while successfully competing.”