This is part of BT’s business simplification strategy, but it might go some way to fending off potential ‘activist’ shareholder Drahi
BT Group is seeking to “outsource and transform” part of BT Group’s supply chain across the UK as part of a new, long-term relationship.
The supply chain provides logistics support across all of BT Group’s operations, including supporting the Group’s fixed and mobile network build activities by transporting stock and replenishing supply stores: BT has more than 15 million residential and business customers.
BT’s said this arrangement is part of its ongoing strategy to simplify and modernise its business, which “continues to make strong progress”.
The operator will be outsourcing its core warehouse and transport and plans to move about 300 staff who work in these areas to being employed by GXO under the Transfer of Undertakings (Protection of Employment) or “TUPE” agreement.
A further 300 third-party agency support roles will continue their work under the terms of the partnership. BT says it will “retain critical expertise to ensure continuity of service”.
In 2021, as part of its wider modernisation programme, the operator set up BT Sourced as a new, standalone procurement company within the Group alongside its supply chain business. BT says it is making good progress on its business transformation programmes “to create a stronger, better BT for our customers, the country and colleagues by modernising and bringing down costs”.
In November 2021 the company announced that it had achieved its £1 billion cost savings target 18 months early and brought forward its FY25 target for £2 billion of savings to financial year 2024.
All of which will provide some ammunition if and when French billonaire Patrick Drahi, who controls Altice strikes: he acquired an 18% share in the BT and could well start throwing his weight around as an activist shareholder, which has become very fashionable of late in Europe, or possibly mount a takeover bid, as he has done elsewhere, including in the US and Portugal.