Another 15,000 jobs to go at BT
One in ten to be shown door
BT has cut 15,000 jobs this year, and will lay off another 15,000 people in the year ahead.
Problems at BT Global Services, which made a loss of £1.5bn on revenues of £2.1bn in the quarter, contributed to an overall loss before tax for the year of £134m for the whole group. BT expects revenue for the group to fall between 4 and 5 per cent in 2009/2010.
Ian Livingston, BT's chief executive, said: "Three out of four of BT's lines of business have performed well in spite of fierce competition and the global economic downturn. However this achievement has been overshadowed by the unacceptable performance of BT Global Services." Livingstone said BT had changed the management of Global Services and begun the restructuring process.
The company has cut 5,000 permanent positions and 10,000 temporary or indirect jobs in the last year. It expects to cut another 15,000 positions this year. Staff leaving costs fell 5 per cent to £1.3bn.
BT's board is proposing a final dividend for the year of 6.5p, compared to 15.8p last year.
It expects revenue to fall another 4 to 5 per cent in 2009/2010, but hopes to have cut costs by over £1bn.
BT is paying £525m a year into its pension pot for the next three years, to pay off its deficit.
BT's full figures are here.