Feeds

BT job cuts start to bite ahead of March deadline

And contractor rates cut

Secure remote control for conventional and virtual desktops

BT contractors are continuing to leave the firm ahead of the end of March deadline.

The telco said in November that it would cut jobs by the end of March and that most of them would be contractors.

Mark Williamson's weekly internal BT newsletter addressed concerns about contractors leaving the company. The email, seen by The Register, said the reduction in numbers was causing concern not just for contractors "but also for us internally about the risk we are carrying".

The missive outlined an earlier meeting with Ian Livingstone and other chief executives which warned that the firm was heavily geared - it has a market cap of £7bn but total debts of £11bn - and noted the problems at BT Global Services.

The mail said:

Outside BT, business failures are up 30% in Q3 so that means we have fewer customers to go after and although Openreach are trading very well in Q3 they lost 250,000 lines – that’s the equivalent of losing line business of Edinburgh in 3 months. Although we maintained our broadband position by cutting charges we are now left with a £120M gap to fill by selling more. Finally the point was made that if you see a Virgin cabinet at the street side it is already powered up and cabled up for SFBB (Super Fast Broad Band) – ahead of us.

The mail was blunt about the urgency of cutting costs. "The contractors who currently work for us, in the main, add real value, work hard and deliver. Unfortunately, we can’t afford them – this goes back to Ian’s point about cash flow. It is difficult to get into a debate about value for money, and quite frankly, pretty pointless, if you can’t afford something.

"We have to cut costs to generate cash and then save that cash rather than spend it elsewhere and we have to take more risk – never being reckless but accepting that we can’t afford perfection – the key watchword in the year to come will be affordability."

Asked about the cuts and about rumours of remaining contractors having rates capped a BT spokeswoman said: "BT has for many years worked with its unions to avoid compulsory redundancies among its directly-employed people in the UK. In consultation with the unions, we are committed to retraining our own BT people to fill more roles that are currently carried out by agency or indirect staff.

"Most of the 10,000 roles we will lose this financial year will be agency or indirect staff and the terms on which they are employed are set by their employing agency, not BT." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

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.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
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?