BT to cut another 15,000 jobs
- 15 May, 2009 05:55
BT Group plans to cut about 15,000 jobs, including indirect employees, this year, the company said on Thursday while announcing its fourth quarter and annual results.
The cut in jobs comes on top of cuts by the company of about 15,000 jobs during its fiscal year ended March 31.
BT said that as part of its cost savings program, it had reduced full-time employees during the year by 5,000, while also reducing by around 10,000 the number of indirect employees working through agencies or third party contractors.
Further reductions of a similar level are planned this year, BT said.
The move by BT comes as its profits and revenue slide due to the global economic downturn, fierce competition, and an "unacceptable" performance by its BT Global Services unit.
The company's revenue for the fourth quarter that ended on March 31 grew by 1 percent to £5.5 billion (US$7.8 billion at the exchange rate on the last day of the quarter) from the same quarter in the previous year.
Its adjusted profit before tax for the quarter fell by 40 percent to £429 million from £714 million in the same quarter in the previous year.
The company's annual revenue grew by 3 percent to £21.4 billion.
BT expects revenue to decline by 4 percent to 5 percent in the current fiscal year, reflecting a continuation of the trends seen in the fourth quarter, the impact of lower mobile termination rates, together with the impact of refocusing its BT Global Services business, it said.