BT has started the search for a successor to its chief executive, Philip Jansen, as the telecoms company prepares for a major cost-cutting programme.
The FTSE 100 company has hired headhunting firm Spencer Stuart to look for a new chief executive to take over from Jansen.
It comes after Jansen in May revealed plans to cut as many as 55,000 jobs across the company by 2030, citing the need for a leaner business as well as the impact of artificial intelligence (AI).
Under that plan, the company, which owns the EE mobile network and a large broadband internet network, would cut staff numbers from 130,000 globally to 75,000-90,000 between 2028 and 2030.
BT could announce a succession plan as soon as its annual shareholder meeting on Thursday, according to Sky. Jansen has reportedly indicated to BT’s board, chaired by former ITV boss Adam Crozier, that he may consider leaving in 2024.
A BT Group spokesperson said: “As normal course of business the BT board undertakes regular succession planning to ensure it is preparing appropriately for the future.”
Jansen, who previously led payments company Worldpay, has led BT since 2019 after taking over from Gavin Patterson, who left after failing to win round investors to his own turnaround plan.
In May, Jansen said that using AI could make the company more efficient. Once the company had completed its rollout of 5G mobile networks it would be able to make do with fewer employees as well, he said.
Yet Jansen has also struggled to make an impact with shareholders. BT’s share price has nearly halved since February 2019. It closed on Friday at 122p, valuing the company at £12bn, after a steady decline from nearly £5 a share in early 2016.
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The drop in market value has made BT the subject of takeover speculation, in particular given billionaire Patrick Drahi has built a near 25% stake in the company, making him the largest shareholder. The second-largest shareholder is Deutsche Telekom, with a £1.4bn stake – down from nearly £4bn in value when the German group invested in 2015.
Drahi, the owner of telecoms group Altice, has previously insisted he did not intend to make a bid for the company. Any attempted takeover would probably draw scrutiny from UK regulators, given BT’s significant role in the UK’s telecoms network infrastructure.
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