BT workers braced for more job losses
Published: 10:36, 15 May 2009
Updated: 10:36, 15 May 2009
by business editor Trevor Sturgess
BT workers in Kent are braced for job losses after the loss-making telecommunications giant warned at least 15,000 jobs were at risk.
An "unacceptable" performance by its global services division has been blamed for a £1.3bn loss, BT’s first full-year deficit since 2001.
The latest proposed job cuts follow an earlier exercise that saw 15,000 people leave the business.
BT’s main offices in Kent are in Sevenoaks, Canterbury, Chatham and Tunbridge Wells together employ more than 1,500 people.
Many more are based in the county, working from home or in smaller locations.
In a statement, BT said: "Like last year, we anticipate the reductions to be peppered around the globe, rather than concentrated in any particular location. BT has no plans to introduce compulsory redundancies. Among other things, we will be looking to see if UK workers can take on some of the work currently carried out overseas.
"Of the 15,000 posts that went last year, two thirds were subcontractors and agency staff. The majority of BT staff who left either went with severance packages, through retirement or because they found other jobs. BT has no specific target for the year ahead, but we believe the number could be similar to last year."
BT revenue grew by three per cent to £21.39bn for the full year, and just one per cent - to £5.5bn - in the fourth quarter to the end of March. BT slashed the full-year dividend by 59 per cent to 6.5p.
Ian Livingston, 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 and the resulting charges we have taken. During the year we have changed the leadership of BT Global Services and started to turn the division around."
He said the company would examine doubling the pace of the roll-out of super fast broadband that would take fibre-based services within reach of a million homes and businesses. He added: "I believe BT will emerge from the recession a stronger company to the benefit of our customers and shareholders."
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