BT boss refuses to rule out job cuts after ‘unprecedented’ Talktalk rescue

BT chief executive Allison Kirkby has avoided committing to preventing job losses among the 900 Talktalk employees integrated into the telecoms giant during its controversial acquisition. Kirkby defended the transaction as an "unprecedented" rescue, justifying it by citing the imminent collapse of Talktalk, which threatened millions of customers and critical public services.

She noted the circumstances were "very unique" but did not comment on potential competition impacts while regulators reviewed the deal. The takeover, completed through administration of Talktalk's assets, has raised concerns among rivals about strengthening BT's position in the UK broadband market, potentially raising prices. BT's workforce has reduced by 11% over the past year, reaching 90,000 employees, with Kirkby aiming to shrink the company to 65,000 to 70,000 by 2030, excluding international operations.

The acquisition, expected to cost around £400m this financial year, has also prompted scrutiny from the government, with Culture Secretary Lisa Nandy intervening on public interest grounds due to the risk of infrastructure disruption if Talktalk had collapsed. BT reported a 12% rise in pre-tax profits to £1.1bn for the six months ending September, but its debt increased to £21bn, while cash left after operations fell 59% to £236m.

Virgin Media O2, grappling with a £22bn debt pile, is reportedly considering leveraging BT's Openreach network while curbing its own fibre expansion plans.