Feeds

BT jobs axe slashes profits

Sacking 5,000 people is expensive, y'know

Next gen security for virtualised datacentres

BT's second quarter profits have been spanked 29 per cent by its cull of middle management and accompanying restructure, the firm revealed today.

In the three months to 30 September, BT's net income was £435m, down from from £629m a year ago. Pre-tax, and not including the outlay on job cuts and other reorganisation charges, profits were down one per cent to £660m.

Revenues were up three per cent year-on-year to £5.1bn, with "new wave" IP-based services across the group making up for a one per cent slide in BT's traditional business.

The sales increase didn't have quite the effect it could have on the bottom line, because of the cost of the redundancy programme, however. About 2,000 white collar workers have voluntarily headed for the door so far, and chief exec Ben Verwaayen wants 3,000 more to go. BT has said the total cost of the cuts will be $450m, and that it will be repayed by savings in two to three years.

Predictions of an end to big net additions in broadband once again proved premature. BT Retail attracted 178,000 net new punters, making it the only provider with more than four million lines. It's IPTV product BT Vision has about 60,000 customers, which BT said is "in line with plans".

The strongest performing market for BT was big enterprise, where revenues were boosted seven per cent to £1.83bn. Consumers and smaller business both delivered a three per cent revenue increase.

The consumer business growth was the first in four years, which BT attributed to recent price cuts in response to the cheaper offerings of new LLU entrants.

At time of writing BT stock was trading more than three per cent down on the results.

Company earnings statement fanciers should visit BT here

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
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
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
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
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.