BT to cut 10,000 jobs

BT is cutting 10,000 jobs by the end of the financial year as it reports an 11% dip in second quarter profits. The telecoms giant says the cuts were part of its “ongoing efficiency programmes”.

The majority of jobs will go from “the area of indirect labour, including agency, contractors, subcontractors and offshore workers”, it says. Pre-tax profit before special items and costs associated with job losses dropped 11% in the three months to September 30, driven by a 36% earnings slump at its BT Global Services division.

Earnings before interest, depreciation and amortisation and before leaver costs dropped to £119m at the division, down 36% on the same period last year.

Last month, BT Group finance director Hanif Lalani was named chief executive of Global Services, which provides networked IT services, after BT admitted that the division was underperforming.

Group revenue increased 4% to £5,303m while operating profit before specific items and leaver costs fell 1%.

Chief executive Ian Livingston says: “”Three out of our four business units, BT Retail, BT Wholesale and Openreach are delivering on or ahead of target but profits in BT Global Services are simply not good enough and we are taking decisive action to put matters right.”

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here