Feeds

BT waves goodbye to 10,000 temps and permies

Global Services blamed

Intelligent flash storage arrays

BT is to cut 10,000 permanent and contractor jobs before the end of the financial year in March.

The telco, which has 160,000 staff, said 4,000 people have already left. Contractors and offshore workers are expected to bear the brunt of the cuts.

The news comes as BT posted results today for the second quarter ended 30 September. This saw revenue up four per cent to £5.3bn but profits before tax and specific items down 11 per cent to £590m.

Chief exec Ian Livingstone said: “Three out of our four business units, BT Retail, BT Wholesale and Openreach are delivering on or ahead of target. But profits in BT Global Services are simply not good enough and we are taking decisive action to put matters right."

Last month BT announced a profit warning and the departure of Global Services boss Francois Barrault.

Livingstone said Global Services was still growing revenue, but needed to translate that into profits. He expects BT sales to grow for the full year but problems at GS would push down Ebitda (earnings before interest, tax, depreciation and amortisation).

For the second quarter BT Global Services revenues grew 15 per cent to £2.157bn, but made an operating loss of £53m compared to a profit of £7m in the same period last year.

BT Retail revenues were flat at £2.127bn, but operating profit grew 13 per cent to £318m. A seven per cent fall in line and call revenue was offset by a 25 per cent increase in revenue from networked IT services.

BT Wholesale continued to decline, but not as fast as in the first quarter. Revenues fell seven per cent to £1.168bn while profits fell three per cent to £148m. Broadband revenue fell £39m as a result of people moving onto unbundled lines. Managed network solutions grew 50 per cent to £108m.

BT Openreach saw revenue from other parts of BT fall slightly, but revenues from third parties grow. The division brought in £1.066bn from BT, down three per cent. External revenue by 14 per cent to £237m.

BT's statement is here. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.