BT is to cut 13,000 jobs over three years, about 12% of its workforce, as it seeks to slim down its management and back-office roles.
The telecoms giant said that the job cuts and other measures would help it to reduce costs by £1.5bn.
It added that it would be hiring about 6,000 employees to “support network deployment and customer service”.
A third of the job reductions will come from outside the UK in its Global Services division.
Last year, BT was forced to write down the value of the Italian part of Global Services after an accounting scandal that cost the firm more than £500m.
The company also said it intended to move out of its existing central London headquarters and into smaller premises.
Its shares fell nearly 8% in early trading. BT said it was keeping its full-year dividend unchanged from last year at 15.4p a share.