BT CEO Gavin Patterson announced the company strategy to cut 13,000 jobs — mainly back office and middle management roles – in 3 years to achieve cost reduction of £1.5 billion.
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BT also aims to hire 6,000 people to support network deployment and customer service.
BT will increase FTTP and mobile infrastructure investment within annual Capex allocation of around £3.7 billion.
BT’s new digital products will target global customers, reducing capital intensity, and significantly lowering costs.
BT plans to exit BT’s headquarters in Central London.
BT consumer business will launch converged fixed and mobile products, and make better use of customer data and digital channels for targeted and personalised marketing.
BT Enterprise business will create new revenue streams alongside existing offerings, such as driving take-up of Voice over IP, networking and unified communications, and leveraging its security proposition.
BT will create new revenue streams in selected adjacency offerings to add high-margin revenues.
BT aims to have a single integrated all-IP fibre network that enables converged access across fixed, WiFi, and mobile, whilst maintaining capital expenditure discipline within an annual allocation of around £3.7 billion over the next two years.
BT aims to shift from buying to strategic sourcing, consolidating spend from current 18,000 suppliers and designing and standardising products to meet market needs while reducing the total cost of ownership.
“BT is uniquely positioned to be a leader in converged connectivity and services. We are a clear market leader in terms of the scale of our customer relationships. The strength will enable us to build on the disciplined delivery and risk reduction of the last financial year,” Gavin Patterson said.
BT said the integration of EE into BT is delivering run rate cost synergies of £290 million. BT’s restructuring program has removed over 2,800 roles and delivered savings of £180 million during the year.
BT reported revenue of £5.967 billion (–3 percent) in Q4 and £23.72 billion (–1 percent) in fiscal 2017-18.
BT’s Gfast network reached 1 million premises and FTTP reached 560,000 premises in Q4.
Openreach fibre connections reached 555,000 in Q4 with superfast fibre broadband passing nearly 27.6 million UK premises.
4G coverage reached 90 percent of the country.