BT to slash workforce by 10,000 as 2Q profits slip

13 Nov 2008

BT has announced that it will reduce its headcount by 10,000 by March next year, with 4,000 staff employed directly by BT expected to lose their jobs by the end of the financial year, and the remainder made up by contractors and third-party employees. The job losses came as BT reported an 11% decline in profits before tax in the three months to 30 September 2008, on the back of a poor performance from BT Global Services. Earnings before interest, tax, depreciation and amortisation (EBITDA) at Global Services fell 36% to GBP119 million (USD182 million), as demand slowed in the UK and the group failed to push through planned savings at the division quickly enough. Group pre-tax profits, before costs associated with the job losses, fell 11% to GBP590 million, on revenues of GBP5.3 billion, a rise of 4% compared to the same period last year. BT also announced changes to the group’s pension scheme, which saw the surplus drop by GBP1.4 billion in the first six months of the financial year.

United Kingdom, BT Group (incl. Openreach)