BT cuts staff after lacklustre profits

24 November 2008
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24 November 2008

Six thousand staff contractors at BT are set to lose their jobs by 2009 as part of major cost-cutting.

The telecoms firm aims to reduce its operating costs by £1.25 billion and will begin by cutting 10,000 jobs over the next year. Of this figure, 6,000 "indirect" employees, including workers in outsourced call centres and at IT services suppliers, will be made redundant. A spokesman for BT said procurement would play a role in reducing the number of contracted staff. But he added that it was "possible" some buyers will also face the axe.

Earlier this month BT announced its profits had reached £5.3 billion, up 4 per cent on this time in 2007. The company said it was disappointed with the performance of its Global Services division, because it did not deliver on planned savings targets. A spokesman explained that the function, which spends £1.1 billion every year, is looking to reduce its number of suppliers and the complexity of what vendors provide to tackle the issue.

SMnov2008

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