BT and Verizon Merger Could Affect 68,000 Jobs Globally

BT and Verizon have agreed to combine their business operations in a deal that follows announcements of substantial job reductions at both companies.

According to Verizon, the US telecoms firm will make an equalisation payment of US$625m to BT. The joint venture could generate combined annual revenue of US$4bn and serve more than 3,000 customers worldwide.

The agreement ends an 18-month search by BT for a buyer of its international operations. Allison Kirkby, Chief Executive Officer at BT, has said she will refocus the company on the UK market following the deal.

Allison took the chief executive role in 2024 and has led a cost-saving programme across BT. In May, she said the company would increase its cost savings target from £3bn by 2029 to £3.7bn by 2030.

Workforce reductions at both firms

According to BT, the planned cost savings over the next four years could result in 55,000 job losses globally. Verizon has pursued a similar strategy and announced plans in November to cut more than 13,000 jobs across all operations.

Dan Schulman, Chief Executive Officer at Verizon, told employees during the November announcement that the company needed to "simplify our operations to address the complexity and friction that slow us down and frustrate our customers".

The merger follows a series of asset reductions at BT. These include the sale of its Italian business and its Irish wholesale and enterprise unit.

Neither company has disclosed any potential cost reductions following the merger's completion. Both firms are yet to announce the official name of the joint business venture.

Leadership appointments and structure

The new business will be overseen by Martijn Blanken, a former executive at Australian telecom firm Telstra. According to BT and Verizon, the new venture will be incorporated in Jersey and headquartered and tax resident in the UK.

Martijn is expected to join BT on 1 September, ahead of the deal's estimated completion in 2027.

Clive Selley will continue to serve as Chief Executive Officer of BT International until the transaction is complete. Verizon's leadership will remain the same and both businesses will operate independently before the deal closes.

Allison says the agreement is a "major milestone for BT International, and an important step forward for BT as a whole" as the company delivers on its UK-focused strategy.

Strategic rationale for merger

Dan says the joint venture would create a "cutting-edge, AI-ready and secure platform run by a single global organisation dedicated to their needs".

Allison says the agreement between the two telecoms firms would combine BT's "expertise and heritage with Verizon's deep relationships with multinationals".