BT Group is merging two of its units into a new business-focused arm - and it hopes the restructure will save it at least £100m.
The telecommunications giant is bringing together its global and enterprise units, which serve business customers from SMEs to the world’s largest companies, to form BT Business.
The group said the combined unit is expected to provide a more efficient and simpler service for its 1.2 million business customers, and says the merger should bring in annual cost savings of at least £100m by the end of the 2025 financial year.
BT said the streamlining will involve the “consolidation and rationalisation” of management teams, products, processes and IT systems. News agency PA understands the move could result in job cuts as the two units merge and BT reduces duplicate roles.
It comes as BT Group faces a cost-cutting drive with a target to save £3bn by the end of 2024-25.
Chief executive Philip Jansen said that “inevitably” some jobs would be cut in this plan as he strives to make it the most efficient organisation it can be.
PA reports that BT Business will form from January 1, under the leadership of Bas Burger, the current chief executive of BT’s global unit, and will begin reporting as a single unit from April 1.
The combined business units generated revenues of around £8.5bn and earnings of over £2bn in the latest financial year.
The merger will be supported by the current chief executive of the enterprise unit, Rob Shuter, who will then leave BT after a few months to step down from executive life and spend more time with family and on his personal interests.
The merger leaves BT Group with three customer-facing units – consumer, business, and its digital network division, Openreach.
Mr Jansen said: “By combining the two units, BT Business will bring the group’s combined assets, products, capabilities and brand to the service of all of our 1.2m business customers who will benefit from faster innovation and delivery.
“Bas is an excellent leader and I’m confident he will build on the plans already underway and drive the combined business back to growth.”
He added: “I would like to reiterate my thanks to Rob for his contribution to BT over the last two years and wish him well for the future.”
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