BT wields the axe, again

Source: Stock Market Digital

Date :14/11/2008 11:23:32

Phone company to cut 6,000 more jobs despite 2Q net profit rises

BT Group plc, Britain's largest phone company, yesterday, November 13, said it would slash 6,000 more jobs by March to “keep costs down and maintain its profits,” despite announcing that quarterly earnings rose 18 percent.

BT said profits rose because last year's earnings were “artificially weighed” by a large one-time restructuring cost, so the job cuts were necessary to improve overall profitability.

The 6,000 job reductions, which come on top of some 4,000 already made, will be achieved by not replacing employees who leave the company.

If layoffs are necessary, they will hit workers employed through outside agencies, contractors and offshore workers, the company said.

The job cuts are part of BT's plan to reduce costs by as much as £800 million this year.