Original URL: http://www.theregister.co.uk/2010/01/19/bt_axe_local_business/

BT takes axe to Local Business

'Significant' cuts

By Christopher Williams

Posted in Small Biz, 19th January 2010 10:51 GMT

BT is making deep cuts to its Local Business network this week, following a year and a half of plummeting sales.

BT Local Business director Andy Hudson told staff: "Quite frankly the business is really, really, really struggling... every quarter we are failing to grow and we are shrinking."

He declined to say in a conference call last week exactly where the axe will fall but admitted "it's a significant number of people and it will affect most areas of my group".

He did however cite a speech he made last year that threatened a third could lose their jobs if BT Local Business performance did not improve.

The cuts will be finalised by Thursday, staff heard. Those made redundant will receive a minimum of six months' pay.

Hudson was keen to point out upper management will be pruned too, saying: "My management team is likely to be considerably smaller than it is at present."

BT Local Business is a national network of 50 sales and service offices targeting small and medium-sized enterprises. Following the cuts it will be restructured, with more pressure on remaining staff to increase sales.

"Lots of high value customers have left us... we haven't won enough back," Hudson warned. ®