Feeds

BT jobs axe slashes profits

Sacking 5,000 people is expensive, y'know

The Power of One Infographic

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

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.