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BT Cuts 15k Jobs, Reports Poor Q4

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Here's something to fill you full of joy-joy feelings: struggling monster telco British Telecom isn't going to cut the 10,000 jobs previously declared - it's going to cut 15,000.

The news follows the revelation BT has lost £134m in its last financial year. The main guilty party is its global services unit, a division that handles enterprise network systems, which took a huge £1.6bn hit. In BT's favour, the BBC says it will be making £525m of pension contributions in each of the next three years to help cut the scheme's deficit.

"Three out of four of BT's lines of business have performed well in spite of fierce competition and the global economic downturn," said BT CEO Ian Livingston. "However this achievement has been overshadowed by the unacceptable performance of BT Global Services and the resulting charges we have taken."

The redundancies equate to approximately 10 per cent of BT's global work force and reflect the cost cutting undertaken by major enterprises during the recent times of economic turmoil/purgatory/hell-on-earth. Headline figures for BT's Q4 include revenue of £5.4bn, annually £21.3bn - both virtually unchanged from 2008.

The picture is unlikely to get any rosier for BT either as its fixed line services struggle against mobiles, its mobile service struggles against rival networks and its television services struggle against both Sky and Virgin. Furthermore, the eventual roll out of Long Term Evolution (also known as 4G - 3G's successor) touts speeds in excess of 300Mbit so its DSL business is under threat.

Nah, I wouldn't be buying shares any time soon...

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