United Kingdom telecoms giant BT axes 13000 jobs

May 11, 2018, 01:42
United Kingdom telecoms giant BT axes 13000 jobs

BT chief executive Gavin Patterson is under pressure from investors to improve the company's stock performance, which has nearly halved over the last two years. The rationalisation of sites will involve some new offices being opened and will not affect the BT Tower. the telecom firm's headquarters will remain in London.

It's not all cost-cutting measures, however - BT announced it would be hiring around 6,000 new employees to "support network deployment and customer service".

On the surface of it, things are going pretty swimmingly for BT, which just announced annual pre-tax profits of £2.6bn - a rise of 11% year-on-year.

It comes as the British firm struggles following a poor financial performance that led to the announcements of 4,000 redundancies in May a year ago.

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He said around 80 per cent of its staff were based in around 50 offices across the United Kingdom and that this will be cut to 30 "modern, strategic sites to create a more collaborative, open and customer-focused working culture".

It explained on Thursday that it was making moves to simplify its operating model by "de-layering" its management structure and ensuring there are "fewer, bigger, more accountable leadership roles". The plan will additionally see simplification of the company's management, increased automation for improving productivity, new digital products, and consolidation of its supplier base.

"While I recognise the pain, ultimately it is the right thing to do for the business".

Prospect, the union representing 140,000 public and private sector workers such as engineers and managers said the larger-than-expected cuts will be a "devastating blow" to its members and sounded "unrealistic".

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"Many of the roles that BT is proposing to cut are highly skilled professionals and the loss of that expertise could impact BT's research and innovation capability".

BT is focusing on investing ultrafast broadband and to lead in 5G.

In addition, the operator plans to exit its headquarters in London and other non-specified locations in a bid to reduce so-called inefficiencies.

Around 80 per cent of its staff are now based in around 50 locations, with some cities hosting multiple offices.

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The latest round of job cuts and restructuring was announced as BT delivered a three per cent drop in fourth-quarter revenue to £5.96bn. The restructuring will cost 800 million pounds to implement. For the 10 years from April 1, 2020, to March 31, 2030, BT will make annual payments of around GBP900 million towards its pension scheme.

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