BT Group announced that it will be combining its Global and Enterprise units into a single B2B unit, BT Business.

The combined unit will deliver gross annualized cost savings of at least £100 million by the end of FY25 through consolidation and rationalization of management teams, support functions, product portfolios and systems.

BT Business will create a B2B focused telecoms and technology business which in FY22 generated pro-forma revenues of approximately £8.5 billion and EBITDA of over £2 billion.

BT is a leading provider of B2B connectivity and related services to UK and multinational corporations, government and public sector organisations worldwide, as well as UK SMEs and SoHos. BT Enterprise is the market leader in the UK, with a market share of 30 percent.

Rob Shuter, CEO of BT Enterprise, will be leaving BT to step down from executive life and spend more time with family and on his personal interests.

BT Business will be led by Bas Burger the current CEO of BT’s Global unit. Bas joined BT Group in 2008 and prior to the Global role was responsible for BT Americas.

BT’s enterprise facing units have been under revenue pressure for a number of years, particularly its MNC-oriented BT Global unit. BT has already unified much of its product development process so simplifying its go-to-market operations is a logical next step,” Gary Barton, Research Director for Enterprise Technology and Services at GlobalData, said.

“Competition from traditional competitors such as systems integrators sits alongside the rapidly growing threat of hyperscalers such as Microsoft and AWS who have already stolen a march in areas such as cloud and unified communications and are now threatening in the wide area network market.”