Britain’s BT Combines Two Units In $122 Million Cost Savings Drive

Britain’s BT on Friday said it planned to set up a new unit for corporate customers by combining two existing businesses in a move which it says could save the firm at least 100 million pounds ($121.98 million) by the end of 2025

The country’s biggest broadband and mobile operator is under pressure to cut costs so that it can maintain the pace of building its fibre network at a time of rising labour and energy costs.

BT is aiming to take fibre broadband to 25 million premises by 2026 in a race with rival Virgin Media O2 and smaller alternative networks.

The company said the new unit BT Business would be formed by putting together its Global and Enterprise divisions and would be led by Bas Burger, the current CEO of BT’s Global unit.

Philip Jansen, BT’s chief executive, said that the new structure would benefit corporate customers by improving innovation and delivery.

“Bas is an excellent leader and I’m confident he will build on the plans already underway and drive the combined business back to growth,” Jansen said in the statement.

The 100 million pounds of savings would come from combining the management teams, support functions, product portfolios and systems of the two units.

(Reporting by Sarah Young; Editing by Kate Holton)