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Telecoms giant BT has announced a significant reduction in its workforce alongside a notable loss of broadband customers to rivals, as it navigates a “competitive” market.

The company reported a decline of 242,000 Openreach broadband customers during the second quarter of 2025.

This downturn was attributed to intense competition and a softening in the wider broadband market, according to statements made to investors.

Simultaneously, BT has pressed ahead with a major overhaul, involving substantial cost-cutting and a renewed focus on its UK operations and emerging business sectors.

That has resulted in a 6 per cent reduction in its total workforce during the first half of the year, bringing the headcount down by approximately 5,000, from 116,000 to 111,000 people since the financial year began.

The job reductions form part of nearly £250m worth of annual cost savings made over the period, bringing the total to £1.2bn over the first 18 months of its cost-cutting programme.

BT is hoping to make savings worth £3bn a year overall.

Group revenues declined by 3 per cent to £9.8bn over the six months to 30 September, compared with the prior year.

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This was driven by declines in its legacy landline service as well as a weaker mobile phone market, a result of more people holding onto their current device.

Its pre-tax profit slid by 11 per cent year on year to £862m.

Chief executive Allison Kirkby said: “BT is delivering on its strategy in competitive markets.

“Since the start of the year, we’ve driven customer growth across consumer broadband, mobile and TV and we’re stabilising our UK-focused business division.

“Outside the UK, we’ve completed strategic exits and we’re reshaping our international unit.

“BT’s transformation is delivering ahead of plan, as our UK focus and radical simplification and modernisation are helping to offset declines from our international and legacy businesses and higher labour-related costs since the start of this tax year.”