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.”