BT to lose 4,000 jobs in restructure
BT has announced it will restructure several of its departments to save £300m, in a move that will see 4,000 job cuts.
The telecoms giant said the restructure will offset market and regulatory pressures and support investment.
BT said the restructuring programmes will take place over the next two years and affect its global services, group functions and technology as well as services and operations.
This announcement was made as part of BT’s fourth quarter results (2016/2017) statement.
The company reported its profit before tax dropped by nearly 20 percent, year-on-year, in the 12 months to March 2017.
Earlier this year Ofcom fined BT £42m after an investigation found BT cut its compensation payments to other telecoms providers for delays in connecting high-speed business lines.
BT admitted its failings and agreed to pay around £300m to compensate the companies affected.
BT said: “We take this matter very seriously and we’ve put in place additional controls to safeguard against this happening again and to make sure that we’re providing the highest standards in serving our customers.”
Gavin Patterson, chief executive of BT, said: “This has been a challenging year for BT. We’ve faced headwinds in the UK public sector and international corporate markets and must learn from what we found in our Italian business.
“However, we’ve also made good progress in a number of areas. Our integration of EE is going well, our UK consumer, SME and corporate businesses are performing strongly, and we’ve made significant progress in improving customer experience across the group”
Patterson said the company is ready to invest in the UK’s digital infrastructure and new technologies to enhance its customer experience.
BT said it is developing a more digital business by prioritising innovation on the cloud-based platforms delivering its products and services, and becoming less dependent on owning local network.
Helal Miah, investment research analyst at The Share Centre, said despite BT’s drop in PBT investors should note management is now taking a more aggressive approach to put things right and navigate the market.