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BT Cuts 15k Jobs, Reports Poor Q4

Gordon Kelly

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BT Cuts 15k Jobs, Reports Poor Q4

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...

Link:

Press Release

mike 3

May 15, 2009, 1:11 am

Seems everyone hate BT so good

ChaosDefinesOrder

May 15, 2009, 1:27 am

That's what they got for being complacent and not upgrading their infrastructure in bits and pieces over the years! The cost for their fibre rollout is huge because they didn't do it gradually. Now they've lost so much ground to Virgin it's costing an obscene amount to upgrade in the worst possible time to be spending obscene amounts of money!





Then there's the frankly laughable excuse for broadband that BT provides. Seriously, why do BT only use ASDL instead of ADSL+? the + services use the same lines on wholesale, why can't the "master provider" also use this? I get 10Mbit on my Be ASDL+ on BT phone line, where the max I could get direct with BT would be 6 or 7...





A wonderful and painful example of how complacency and lack of long term vision causes disaster!

Martin Daler

May 15, 2009, 2:23 am

Virgin had to dig up the roads and pavements to lay its network - all BT has to do is use its copper wires to fish fibre through its network of existing underground pipes. What on (in?) earth have they been doing all this time flogging DSL instead of squaring up to Virgin with a proper competitive offering? No wonder they can't compete.

Rob

May 15, 2009, 4:08 am

"Seems everyone hate BT so good"


"A wonderful and painful example of how complacency and lack of long term vision causes disaster!"





I agree BT have walked into this via there lack of competitive actions, but 15,000 people have lost there jobs, thats never good or wonderful





Rob

GoldenGuy

May 15, 2009, 4:33 am

In the words of Rory Bremner : "It's good to walk."

Xiphias

May 15, 2009, 4:45 am

Chaos: Probably because only ~450 exchanges out of 5,500 actually support WBC (BT's ADSL2+) at the moment, and they may have made the right decision to limit their products as that department apparently 'performed well'.





O2/Be are doing better with ~1,200 exchanges connected to their network but there are still entire counties without any enabled exchanges. ADSL2+ is nice for those that can get it, but normal ADSL is certainly not laughable yet.

ffrankmccaffery

May 15, 2009, 7:09 am

After being a customer in the past i get "welcome back" letters from this useless lot with my name still spelt incorrectly so its hardly a surprise

mark

May 15, 2009, 1:24 pm

I know someone who was in a house for 6 months. He ordered broadband in week 1 from BT.


They finally gave him an appointment to come to sort it 3 weeks before he left the house, & posted the modem after he had left.





That's BT service for you.

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