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BT has announced plans to deepen its cost-cutting measures by an additional £700 million over the next four years, as the telecoms giant reported losing more than 800,000 broadband customers.

This move elevates its total cost-saving target to £3.7 billion, up from the previous £3 billion, and extends its restructuring programme by a year to March 2030.

The comprehensive overhaul, initially launched in May 2024, is now projected to cost £1.4 billion, an increase from the £1 billion previously anticipated.

This restructuring includes a previously announced reduction of up to 55,000 jobs globally by the end of the decade.

BT has already achieved annual savings of £1.5 billion through the programme, with £580 million realised in the 12 months leading up to 31 March.

Over the past year, the company’s workforce has shrunk by 7 per cent, now standing at 108,000 staff.

Chief executive Allison Kirkby clarified that while no more staff than originally planned are being axed, the intensified cost cuts mean the total workforce is likely to settle at the lower end of the forecasted 75,000 to 90,000 range by 2030, down from 130,000 workers, including contractors, in 2024.

These additional savings were revealed alongside financial results showing underlying earnings remained flat at £8.23 billion for the year to 31 March. Underlying revenues, however, saw a 4 per cent decline to £19.65 billion, with UK service revenues falling 1 per cent despite recent price increases.

On a statutory basis, pre-tax profits rose 8 per cent to £1.44 billion.

The group said revenues were also set to decline further over the year ahead, forecasting a range of £19 billion to £19.5 billion, while earnings are expected to edge higher to between £8.2 billion to £8.3 billion.

UK service revenues are likewise predicted to come under further pressure, with BT forecasting a range of £15.1 billion to £15.4 billion for 2026-27, against the £15.4 billion reported in the past year.

Openreach has been hit by customer losses in recent years as low-priced competitors – so-called retail altnets – have entered the fray, such as CityFibre.

But the firm said its consumer division returned to customer growth across broadband, mobile and TV during the year.

Full-year results also showed the firm lost fewer customers than feared, down 825,000 across Openreach broadband, which was down from 828,000 shed in 2024-25.

It lost 203,000 Openreach customers in the fourth quarter, down from 210,000 in the previous three months, and said it expects to lose another 800,000 in 2026-27.

Ms Kirkby said: “We have delivered on our financial guidance and we are transforming ahead of plan, offsetting headwinds while successfully competing.”

Ms Kirby has also been looking at a possible stake sale in its struggling international business, with reports in recent days that it is reviving these plans to refocus on its domestic UK market.

BT has been gradually reducing its overseas business as part of wider cost-cutting plans, recently selling off its troubled Italian business and previously agreeing the sale of its Irish wholesale and enterprise business unit.

Shares fell 3% after the full-year figures despite a 2 per cent shareholder dividend increase and as it set out refreshed plans for future investor payouts.