Vodafone announce Colao to step down in October
The current CEO will be succeeded by chief financial officer Nick Read from October 1
Elliot Mulley-Goodbarne
May 15, 2018
BT have announced plans to cut managerial and back-office positions across its global workforce
The announcement comes after a reported three per cent drop in fourth-quarter revenue to £5.967 billion with core earnings rising one per cent to £2.083 billion.
The job cuts are set to save BT £1.5 billion over the next three years with restructuring costs at £800 million.
These job cuts will be BT’s highest since 2008 as its international operations will see job cuts of six per cent.
The telecommunications company is also set to hire 6,000 new engineers and front line customer service staff to support its roll out of fibre and 5G networks.
BT chief executive Gavin Patterson told reporters: “We need to ensure we are competitive in the future, that we can deliver products and services for our customers at the right price.”
“If we compare how we manage the business with our peers, we’re frankly too complex and overweight. This is a big deal.”
BT forecasts a two per cent drop in underlying revenue for the current financial year ending in March 2019 with adjusted core earnings forecast between £7.3 billion and £7.4 billion, down from £7.5 billion the year before.
Money.co.uk editor in chief Hannah Maundrell said: “These rumours are undoubtedly very distressing for employees of BT and their families. Those who fear they will lose their jobs should hope for the best but prepare for the worst.”
“Now is the time to check what redundancy rights you have and dig out any income or mortgage protection policies you hold just in case.”
Patterson added: “Our integration and restructuring activities remain on track. Our restructuring programme has removed over 2,800 roles and delivered savings of £180m during the year.”