BT will set up its international business as a new standalone unit.
As reported by the Financial Times today (May 15), the new division is set to operate separately from BT’s UK business.
The division will be made up of more than 8,000 staff, per a source familiar with the matter quoted by the FT.
An internal memo was apparently sent to staff today stating that BT’s decision to carve out its international unit as a standalone business gives the company “the best chance of success” in both markets at home and abroad.
The publication adds that the international unit would be headed by former BT Business chief Bas Burger.
BT has been considering the future of its international business for some time, having previously outlined plans to optimize it.
In March, Bloomberg reported that BT approached AT&T and Orange about possible partnerships, including a tie-up or potential stake sale of the unit.
BT CEO Allison Kirkby instead wants to focus on BT’s domestic telecoms and broadband opportunities, as the business looks to streamline. Last month, the company agreed to sell its Italian unit to Retelit.
Kirkby outlined plans last year to save a further £3 billion ($3.98bn) in costs by the end of 2029.
Part of her turnaround strategy has been to focus heavily on the company’s home market in the UK.
In 2023, BT announced plans to cut 55,000 jobs by the end of the decade, affecting its operations both in the UK and globally. This is set to reduce headcount at the company to 75,000 by 2030 from 130,000.
Earlier this year, the company agreed a deal to sell its Irish wholesale and enterprise unit to Cordiant subsidiary Speed Fibre Group.
Just before Christmas, Equinix agreed to acquire BT Group’s Irish data center business for €59 million ($67.3m), a deal expected to be completed during the first half of this year.
Read the orginal article: https://www.datacenterdynamics.com/en/news/bt-to-create-standalone-international-unit-report/