British telecom firm BT Group Plc (BT,BT_A.L) Friday announced its plan to combine Global and Enterprise units into a single B2B unit, BT Business.
The new BT Business unit will be led by Bas Burger, the current CEO of BT's Global unit, with effect from January 1, 2023. The new business unit will commence reporting as a single unit from April 1. The CEO of BT Enterprise, Rob Shuter, will support Burger with the integration over the next few months and will then be leaving BT.
BT Business will create a B2B focused telecoms and technology business which in fiscal 2022 generated pro-forma revenues of approximately 8.5 billion pounds and EBITDA of over 2 billion pounds.
The reorganization is expected to create a simpler BT Group with three Customer Facing Units, such as Consumer supporting UK consumers; BT Business supporting business and public sector customers; and Openreach delivering UK nationwide fixed access infrastructure.
The combined unit is expected deliver material synergies by driving significant and rapid gross annualised cost savings of at least 100 million pounds by the end of FY25 through consolidation and rationalisation of management teams, support functions, product portfolios and systems.
BT Group Chief Executive Philip Jansen said, "By combining the two units, BT Business will bring the Group's combined assets, products, capabilities and brand to the service of all of our 1.2m business customers who will benefit from faster innovation and delivery."
The new BT Business unit head Burger joined BT Group in 2008 and prior to the Global role was responsible for BT Americas.
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