BT Group BTGOF will combine its Global and Enterprise units into a single B2B unit to enhance value, strengthen its competitive position, and deliver material synergies.
The move will drive annualized cost savings of at least £100 million by the end of FY25 through consolidation and rationalization of management teams, support functions, product portfolios, and systems.
These will contribute to BT Group’s previously announced target to deliver £3 billion in gross annualized savings across the same timeframe.
BT Business will be led by Bas Burger, the current CEO of BT’s Global unit.
Burger will lead the new unit from Jan. 1, 2023, and will commence reporting as a single unit from Apr. 1, 2023.
BT Business will create a B2B-focused telecoms and technology business which in FY22 generated pro-forma revenues of approximately £8.5 billion and EBITDA of over £2 billion.
The group will then be left with three divisions: consumer, supporting British customers; BT Business, supporting business & public sector customers; and Openreach, delivering U.K. nationwide fixed access infrastructure.
Price Action: BTGOF shares closed lower by 1.74% at $1.4199 on Thursday.
