BT has announced the establishment of a new standalone international unit, reinforcing its ongoing strategic restructuring initiatives. The change aims to streamline operations and enhance focus on its principal UK market. This newly formed division, independent from the domestic business, collaborates over 8,000 staff and will be headed by Bas Burger, the former CEO of BT’s Business Division.
This restructuring move is part of an effort to reduce BT’s global presence and reorient towards crucial markets. Recent actions include exiting certain international locations; significant moves were the sale of BT Italia to Retelit and the divestiture of its Irish business to Speed Fibre Group. These strategic moves signify BT’s intention to concentrate on core markets while ensuring operational efficiency.
A major implication of the unit’s creation is that BT’s international operations will now report earnings separately, adding a layer of financial transparency. This can provide clearer insights into the unit’s performance and potentially facilitate a future sale, spin-off, or merger.
In a communication to employees, the company expressed optimism, stating the restructuring offers “the best chance of success” in both domestic and international territories. This comes amid intensifying competition as industry peers gain momentum.
This transformation aligns with the broader cost-saving efforts led by CEO Allison Kirkby, undertaken to ensure company sustainability. Last year, BT achieved its £3 billion saving goal a year ahead of schedule. Much of these savings emerged from an ongoing job reduction strategy, which aims to cut 55,000 roles by the end of the decade. Beyond this success, Kirkby targets an additional £3 billion cost reduction by 2029.