Global telecom operators cut staff to below 4.36 million through 2Q25, though research shows no clear link between these reductions and margin growth despite AI-driven automation
The global telecoms workforce continues to contract, with operators shedding jobs quarter after quarter as they chase efficiency in an industry where revenue growth remains elusive. According to MTN Consulting’s latest Telco Talent Tracker, total telco employment fell to 4.357 million in the second quarter of 2025, down 1.9% year on year from 2Q24 and marking a decline of roughly 84,000 positions.
Headcount is now dropping by around 20,000 roles per quarter, underlining that this is no short-term correction but a structural shift. The data, which tracks approximately 140 operators worldwide and provides detailed analysis of 72 companies representing about 85% of the global market, shows the workforce steadily eroding since 2011, aside from a brief COVID-related uptick in mid-2020.
The latest figures reinforce a paradox that has become increasingly visible across the sector: layoffs are highly visible and politically expedient, but they are not translating into clear, sustained improvements in profitability.
Annualised global labour costs stood at $258.1 billion in 2Q25, compared with $292.9 billion in capex and $329 billion in depreciation opex. Labour accounted for 21.7% of operating expenditure excluding depreciation and amortisation, slightly down from 22.2% a year earlier. Viewed through the revenue lens, 14.4% of global telco revenues now go to labour, 18.3% to depreciation and amortisation, 51.8% to other opex, leaving 15.5% as operating profit.
High-profile job cuts have dominated headlines over the past year. Verizon’s late-2025 plan to cut 15% of its workforce remains the most dramatic, while AT&T, BCE, T-Mobile US, Charter and Cox in the Americas, BT, Telefónica and Vodafone in Europe, and Telstra in Asia-Pacific have all announced reductions. Telefónica cut 10,600 roles between 2Q24 and 2Q25, followed by AT&T with 8,500, BT with 7,200 and Charter with 6,400.
CFO fever dream
Yet MTN Consulting’s analysis finds no direct correlation between these reductions and subsequent margin expansion, even when multi-quarter lags are taken into account. For many CFOs, layoffs appear to be an easy symbolic move – a form of virtue signalling to reassure investors about cost discipline and dividend protection. Simply cutting staff, however, is rarely a silver bullet. Executives who rush to trim headcount in response to the rise of AI risk hollowing out critical skills, increasing cybersecurity exposure or undermining innovation capacity.
Not all operators are shrinking. KDDI added 16,400 employees year on year as it expanded into data centres, AI, energy and fintech, while Etisalat, rebranded as e&, grew by 11,500 roles. Airtel added 9,100 staff to support 5G expansion, and Telus grew by 7,400, largely within its Telus Digital unit. These moves highlight that automation is changing the composition of the workforce rather than eliminating the need for people altogether, with demand rising for software, cloud and AI skills.
Productivity metrics support this view. Average labour cost per employee rose to $58,800 in 2Q25, up from $50,700 in 2019, driven in part by rising wages in emerging markets. Over the same period, EBIT per employee increased from $49,600 to $63,600, meaning the average telco worker now generates 28% more profit than six years ago.
The report also notes a symbolic milestone: the so-called webscale crossover. In 2011, telcos employed almost four times as many people as webscale players. By 2Q24 the two sectors had reached parity, and by 2Q25 webscale headcount was already 3% higher. As automation accelerates, the challenge for operators is clear. Cutting jobs may satisfy the markets in the short term, but without careful retraining and targeted hiring, it risks leaving telcos smaller, not stronger, in an increasingly software-driven world.
