British telecom group BT cuts 10,000 jobs
British telecoms giant BT is cutting 10,000 of its 160,000 jobs despite increased profits. As the company announced on Thursday, almost half of the cuts have already been implemented.
British telecoms giant BT is cutting 10,000 of its 160,000 jobs despite increased profits. As the company announced on Thursday, almost half of the cuts have already been implemented. The cuts will affect 4,000 permanent employees, most of them in the UK. The rest are temporary workers, consultants and suppliers.
The cutbacks at BT come as a surprise, as the group was able to significantly increase its profits in the second quarter. BT earned 400 million pounds (726 million Swiss francs), 18 percent more than in the same period last year. Turnover rose by 4.1 percent to 5.3 billion pounds (9.6 billion Swiss francs).
According to BT CEO Ian Livingston, cost reductions are necessary. While the Group is generating good figures in the wholesale and retail business in the UK, the international division BT Global Services has fallen short of expectations. The news of job cuts at BT adds to the gloomy mood in the UK. The unemployment rate stands at 5.8 percent. This is the highest figure for eleven years. The number of unemployed is approaching the two million mark.
Numerous other companies have announced job cuts in recent days. As reported by SDA, the media group Virgin plans to cut around 2200 jobs by 2012. The telecoms service provider Yell is cutting around 1300 jobs by March 2010.
The cutbacks at BT come as a surprise, as the group was able to significantly increase its profits in the second quarter. BT earned 400 million pounds (726 million Swiss francs), 18 percent more than in the same period last year. Turnover rose by 4.1 percent to 5.3 billion pounds (9.6 billion Swiss francs).
According to BT CEO Ian Livingston, cost reductions are necessary. While the Group is generating good figures in the wholesale and retail business in the UK, the international division BT Global Services has fallen short of expectations. The news of job cuts at BT adds to the gloomy mood in the UK. The unemployment rate stands at 5.8 percent. This is the highest figure for eleven years. The number of unemployed is approaching the two million mark.
Numerous other companies have announced job cuts in recent days. As reported by SDA, the media group Virgin plans to cut around 2200 jobs by 2012. The telecoms service provider Yell is cutting around 1300 jobs by March 2010.
