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British Telco to cut up to 15,000 more jobs
Thu, May 14, 2009
AFP

LONDON, BRITAIN, May 14, 2009 (AFP) - British telecoms operator BT said on Thursday it will axe up to 15,000 more jobs after posting a net loss of 83 million pounds (92 million euros, 125 million dollars) for its 2008-2009 year.

The heavy job cuts, outlined in an annual results statement, amount to 10 percent of BT's workforce and follow major problems at the company's struggling Global Services division.

The group plunged into the red after a "challenging" year amid a spreading global economic downturn. It had enjoyed net profit of 1.737 billion pounds in the previous 2007-2008 year.

BT added it had already slashed 15,000 jobs over the last 12 months - which was 5,000 more than expected.

"The number of indirect employees working through agencies or third party contractors was reduced by around 10,000, giving a reduction in our total labour resource of some 15,000 in the year," BT said in a results statement. "We expect further reductions of a similar level next year," it added.

The group also revealed on Thursday that it faced a pre-tax loss of 134 million pounds in the year to March 31. Revenues grew three percent to 21.39 billion pounds.

"BT has no plans to introduce compulsory redundancies," a spokesman added. "Our aim is to work closely with the unions to reduce BT's total labour cost, of both direct and indirect staff, as this is critical to the success of the company going forward," said the spokesman.

BT's workforce dropped from 162,000 to 147,000 in the year to March, the company said.

The results, among the worst since BT was privatised in 1984, are also compounded by the cost of trying to plug its huge pension deficit. Andy Kerr of the Communication Workers Union said: "Fifteen thousand is a very challenging level of job losses, especially on the back of last year's reductions.

He said he expected most of the job cuts to be agency staff and contractors, and many of them outside Britain. "However this is a serious day for staff at BT," he said.

"We're working closely with the company to ensure any losses are voluntary and we're looking at new ways of finding new work and retaining permanent employees, including secondment agreements."

 

 
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