BT mulls much larger job cuts - report

Shares in BT Group popped higher on Wednesday afternoon on the back of a report that the telecoms giant may cut almost double the number of jobs than it had previously announced.

New chief executive Philip Jansen, who started on 1 February, is mulling a restructuring that would involved axing 25,000 of the group's 100,000 workers over five years, Bloomberg reported.

The plan would involve a greater use of back-office technology, selling off some units and cutting middle management numbers.

In May last year, BT said it planned to cut 13,000 jobs over three years as part of various initiatives to “transform” its operating model, with its recent trading update in January revealing that the plan was on track, with around 800 roles removed in the quarter.

Jansen's predecessor Gavin Patterson, just a month before the guillotine fell on his four-and-a-half-year reign, said at the time the strategy rejig was needed as the former monopoly launches a 'converged' product range, increases its full-fibre broadband network and pays down its £11.3bn pension funding deficit.

With the company’s share price then wallowing around a five-year low, chairman Jan du Plessis switched out his CEO under pressure from major shareholders, who were content with the general strategic direction of the company but wanted a new broom in charge.

BT shares were up 1.25% to 225.5p on Wednesday afternoon, around 12% higher than last year's low.