Thursday, 10 May 2018

BT to axe 13,000 jobs and quit London HQ in cost-cutting drive.

BT is to axe 13,000 jobs and abandon its central London headquarters in a £1.5bn cost-cutting plan to preserve its dividend as it faces a major expansion of its pensions black hole to £11.3bn.

The jobs will be shed mainly in administrative and back office functions and will be offset by around 6,000 new roles in front-line engineering and customer service, BT said.

The cost-cutting plan is designed to modernise BT and create financial capacity to invest more in its networks, while also maintaining payouts to investors. Capital spending on ultrafast broadband and mobile infrastructure is due to rise to £3.7bn for the next two years, compared with £3.5bn last year.

BT shares fell 7.8pc in early trade to 220p.

The job cuts and property shake-up are the result of an review carried out by the consultants McKinsey under the banner Project Novator.

Gavin Patterson, BT’s chief executive, who has faced City speculation over his own role as the company has struggled over the last 18 months, said: "I am really excited to be delivering the next stage of BT’s transformation and have put in place the team that will support me in achieving these objectives.”

By Christopher Williams

Full story at Yahoo News.

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