Feeds

Jobs dropped at BT as profits fall

Still raking in plenty big moolah, though

  • alert
  • submit to reddit

The essential guide to IT transformation

BT is to axe 3,000 middle managers in the face of falling profits, the giant telco mumbled today. Instead of being up front about the redundancies, the telco buried the announcement in a small paragraph deep in the bowels of BT's Q3 results. Some 49 paragraphs into the statement -- and after it had discussed operating profit and the Year 2000 transition -- an innocuous-looking heading read: "Voluntary redundancy programme". It explained: "As part of the continuing programme of reshaping the group, we are implementing a new voluntary redundancy programme covering approximately 10 per cent of managers, some 3,000 people, who we expect will leave over the next six to nine months. The total cost of this programme is estimated at around £350 million, including the cost of incremental pension benefits." A spokesman for BT said there was nothing unusual in the practice. He said BT has cut its workforce from 250,000 10 year ago, to 125,000 today. The announcement to cut a further 3,000 jobs was part of a well-documented "ongoing process", he said. Investors have reacted nervously to news of today's fall in profits. By mid morning BT's share price had fallen 211p -- more than 17 per cent down -- after the telco said Q3 pre-tax profits slumped 24 per cent to £651 million pounds. BT blamed greater competition for the slide. Yesterday, BT announced it was to invest in a new European business-to-business portal. Called VerticalNet Europe, the portal will be supported by more than $227 million (£141 million) in cash and assets from the three partners, BT, VerticalNet, Inc, and CapitalGroup. The JV is part of BT's strategy to become an "Internet, mobility, and multimedia" company, a spokesman said today. ® See also: BT's witch doctors of spin fail to cast a spell on the UK

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.