Report finds telco jobs fall as labour costs rise
Global telecom employment fell 2.1% year-on-year in Q2 2026, extending a decline dating to 2016, according to a report by MTN Consulting.
The report’s author, Matt Walker, chief analyst at MTN Consulting, said the panel of 145 operators employed about 4.2 million people, down from 4.3 million a year earlier. The 2.1% fall exceeded the decade-long annual average of 1.7%.
The job cuts did not consistently reduce labour costs or establish a direct link between AI adoption, smaller workforces and wider margins. Among 72 sizable operators, MTN Consulting found no measurable relationship between headcount changes and trailing four-quarter EBIT margins.
It also found no consistent link between AI-related news and restructuring. Telefónica cut its headcount by 19.3%, the steepest reduction in the industry, yet had no tagged AI-automation news, while SK Telecom drew the most AI coverage and reduced headcount by 6.2%.
The findings were less positive than those in other industry surveys. Nvidia’s fourth annual State of AI in Telecommunications report stated about 65% of respondents reported AI-driven revenue gains or annual cost reductions above 5%.
MTN Consulting found fewer than 20% of global operators increased revenue by more than 5% a year, while fewer than 20% cut operating expenses by over 5%. Only BSNL, Iliad and MTN Group achieved both, representing less than 2% of the global market.
MTN Consulting said the gap suggested survey responses reflected industry optimism rather than audited operating results.
Labour costs per employee across the global panel rose 6.8% year-on-year to about $62,500. Higher compensation per worker more than offset savings from job cuts, increasing the industry’s total labour bill.
Asia was the only region to add workers during the quarter, with headcount up 0.6%, largely due to hiring by operators including KDDI. Europe posted the largest decline at 3.4%, partly reflecting Telefonica’s 19.3% reduction. Employment fell 2.8% in the Middle East and Africa and 1.2% in the Americas.
Operators who cut staff were more likely to improve operating margins, but better performance was not assured. Event studies dating to 2011 found they outperformed operators which did not cut staff in about 57% to 67% of cases.
MTN Consulting advised operators, vendors and investors to assess workforce changes and automation returns using detailed financial data rather than broad technology claims.
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