BT Group: Savings, Job Cuts Necessary to Remain Competitive -- Update

By Adria Calatayud and Adriano Marchese

--BT Group said job cuts would largely be done by not filling roles as they become vacant

--Savings plan seeks to improve productivity and efficiency in its competitive markets

BT Group PLC said Thursday that it risks falling behind competition if it doesn't improve its productivity and efficiency, which would include cutting thousands of jobs.

The U.K. telecommunications company said its targeted cost reductions of 2 billion pounds ($2.60 billion) by March 2025 will result in a smaller number of people in the business, "largely by not filling roles as and when they become vacant."

The savings and the job cuts come at a time that a company spokesperson said was a period of immense change and investment for BT's future.

The U.K.'s Communication Workers' Union said it will hold a consultative ballot among its members in BT Group and BT's Openreach and EE businesses between Nov. 19 and Dec. 10 that could lead to a vote on whether to take industrial action.

The threat of a national strike is over the company's reorganization plans, which could be the first in more than two decades.

In May 2018, the company said it would cut 13,000 jobs over three years. In May this year, the company said the first phase of its transformation program was complete.

"If we don't improve our productivity and efficiency, BT Group will fall behind in the highly competitive, highly regulated markets in which we operate," a BT spokesperson said.

Write to Adria Calatayud at [e-mail] and Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

November 05, 2020 13:00 ET (18:00 GMT)

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