BT slashes 10,000 jobs

 

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Posted on 13 Nov 2008 at 09:15

BT will axe 10,000 jobs by the end of the financial year, as it struggles to introduce cost savings.

Agency, contract and offshore workers will be hardest hit by the cuts - though BT claims to have already trimmed 4,000 jobs in the UK.

The remaining 6,000 lay offs are expected to be completed by the end of March. BT employs around 160,000 people worldwide.

Though BT denies the cuts are the result of the economic downturn, the news comes as the company reported an 11% fall in profits during the July to September quarter.

CEO Ian Livingston points the finger of blame at the company's global services arm. "Three out of our four business units - BT Retail, BT Wholesale and Openreach - are delivering on or ahead of target," he says.

"But profits in BT Global Services are simply not good enough and we are taking decisive action to put matters right. We have appointed Hanif Lalani as the new CEO of BT Global Services and he will continue to grow the business while reducing the cost base."

The news has sent BT's shares tumbling by nearly a fifth.

Author: Stuart Turton