BT wields the axe to 4,000 posts in major restructuring
BT is downsizing in a big way with the loss of 4,000 posts globally over the next two years, as it seeks to rationalise its administrative and management teams to put it on a more nimble footing.
BT wields the axe to 4,000 posts in major restructuring
The clear out follows the departure of its head of television and sport and comes at a troubled time for the business still reeling from the impact of an accounting scandal at the Italian division of its Global Services operation, which left it out of pocket to the tune of £500m.
That debacle has already seen BT’s chief executive and since departed finance chief forego their annual bonuses, but as the shockwave from that incident ripples through the wider organisation far bigger changes are now afoot.
Among the moves are the replacement of Luis Alvarez, head of the Global Services division, with Bas Burger with thousands of posts further down the food chain also now in line for the chop. BT’s new vision is to create a ‘more focused’ digital business by taking advantage of cloud services to reduce its footprint of physical assets scattered around the globe.
BT’s travails have seen annual pre-tax profits dip 19% to £2.35bn in the year to March but bosses are confident they will soon turn a corner. In a statement the company said: “This has been a challenging year, but BT remains well positioned for the future.
"Our strong businesses, underlying operational performance and financial returns show BT has the strength and breadth to withstand setbacks."