Thursday, 11 May 2017

BT cuts 4,000 jobs as annual profits fall 19% to £2.4bn

BT is to cut 4,000 jobs following a "challenging" year that has seen its chief executive stripped of his annual bonus amid a 19% fall in profits to £2.4bn.
The telecoms firm said managerial and back-office posts would be lost worldwide as it looked for efficiencies across its operations. It did not say how many roles would be affected in the UK.

The FTSE 100 company, which had warned of a hit to profitability in January, also confirmed an earlier report by Sky News that its headwinds in the year to 31 March meant Gavin Patterson had lost awards that would result in him taking home £4m less than in the previous financial year.

The group's outgoing finance director, Tony Chanmugam, was also stripped of bonuses.

The moves - described as "difficult decisions" by the firm's remuneration committee - follow BT's accounting scandal in Italy which helped wipe billions from the company's stock market value earlier this year.

BT shares, 16% down in the year to date, were 3.4% lower in late morning trading on Thursday before recovering some of that ground.

The group's problems also included the telecoms regulator imposing a record £42m fine on the company for "serious failings" at its Openreach division, leaving BT also facing a £300m compensation bill.

SKY      News.