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BT set to announce 6,000 job cuts in bid to save £500m

BELEAGUERED TELCO BT is set to announced 6,000 jobs worldwide, bringing its total cuts over the past year to 10,000 employees when added to the 4,000 cuts it announced last year.

The redundancies will affect almost six per cent of BT’s 98,000-strong workforce, as the company sets out to rebuild investor confidence following a shaky 2017, marred by the Italian accounting scandal which spurred a 42 per cent fall in profits.

CEO Gavin Patterson will formally announce the job losses during BT’s financial results on Thursday next week, claim reports.

Analysts expect that the telco will save about £500m on its annual £4.7bn wage bill by axing 6,000 employees. There is no indication yet which departments or regions will be affected by the cuts, although half of the earlier 4,000 losses, which were expected to save £300m, were in the UK.

Patterson lost his expected £3m bonus last year due to the Italian accounting shock, although that looks like small change compared to the £225m that the company had to pay to shareholders due to the effects of the irregularities. The scandal cost the company £530m in losses and forced a profit warning.

BT was also hit by a £42 million fine from regulator Ofcom, plus a £300m compensation bill, for its failings around ‘deemed consent’ in its Openreach division. Ofcom has been working to break the BT/Openreach monopoly on fibre access for several years.

Openreach is currently on a massive recruitment drive, as it attempts to speed up the UK’s fibre rollout. The subsidiary plans to reach three million homes and businesses by 2020. µ

Source : Inquirer

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