BT Group will cut between 40,000 and 55,000 jobs by the end of the decade, as part of plans to slash costs and overhaul its workforce.
The telecoms giant currently has around 130,000 employees but plans to reduce that number to less than 90,000 by the end of the 2020s, a spokesperson said.
But it could see up to 55,000 roles cut over the five to seven-year period.
The company said it wants to rely on a “much smaller workforce” and a reduced cost base, and to digitise its processes.
Once BT's full fibre broadband and 5G network is rolled out, it will not need as many staff to build and maintain the network.
Chief executive Philip Jansen said: “By continuing to build and connect like fury, digitise the way we work and simplify our structure, by the end of the 2020s BT Group will rely on a much smaller workforce and a significantly reduced cost base.
“New BT Group will be a leaner business with a brighter future.”
He added the firm would be working with its union partners throughout the job cuts and would also rely on natural attrition – when an employee leaves the company but is not replaced.
BT reported full-year revenue down 1% to £20.7bn, as gains in Openreach were more than offset by declines elsewhere.
Underlying cash profit rose 5% to £7.9bn, driven by Openreach and consumer, which offset declines in enterprise.
Underlying free cash flow fell 5% to £1.3bn, with increased capital expenditure a key contributor to the decline, while net debt rose £850m to £18.9bn.
For the coming year, the group expects growth in revenue and cash profit with underlying free cash flow of £1bn to £1.2bn.
The board declared a dividend of 5.39p, bringing the full year to 7.7p – in line with last year.
Matt Britzman, equity analyst at Hargreaves Lansdown, commented that while the job cuts appear drastic, they're not overly surprising, given the mounting costs and slim margins in the wider business.
“Once the Openreach and 5G networks are built out, the strategy shifts to monetising the infrastructure that's in place and leveraging new technologies to do that.
“Progress on both is looking promising, BT's 5G now covers 68% of the population and Openreach is on track to reach 25 million premises by 2026.
“Challenges are looming, though, not least a pension review in the coming months that's likely to result in a write-down, which will add to the burdens on cash, whether in the form of increased payments now or an extension to the deficit recovery timeframe,“ he added.
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