BT reveals plan to cut 13000 jobs over next three years

BT sign

BT is set to axe around 13000 jobs, most of which will be back office and middle management roles, the company has

The telecoms giant will cut the roles, made up mostly of back office and middle management, in the next three years.

BT shares were trading 8.4% lower at 218.50 pence early Thursday, the worst faller in the FTSE 100 index.

The announcement comes almost a year after BT said it was to axe 4,000 jobs as part of a restructuring of its Global Services unit.

Patterson, in the role since 2013, said the restructuring, which comes after a tough 2017, would focus on the essential services needed by consumers and businesses.

BT also said it will hire about 6,000 new engineers and front-line customer service staff to support its roll-out of a fibre and 5G mobile networks.

BT said in a statement alongside its annual results that it will shed the jobs over the next three years as it seeks to slice off an extra 1.5 billion pound (USD 2.0 billion, 1.7 billion euros) in costs.

He said: "Decisions like this are not easy, we recognise that it is going to affect a lot of people but ultimately we need to do these things to ensure that we remain a competitive business going forward and that we can benchmark our performance against peer companies".

He added that it was the "right thing for the business" and would help take BT "into its next chapter".

BT said that the majority of the redundancies will come from back-end roles and mid-management, adding that simplifying its structure will result in "fewer, bigger, more accountable leadership roles".

BT said it was also trying to improve productivity across its core United Kingdom operations, including "process simplification and automation to reduce costs".

BT is also reducing its property footprint, which includes leaving the firm's London headquarters and making other "non-core disposals and by modernising our supplier arrangements".

In response to the cull, Philippa Childs, the general secretary of the Prospect union, said: "The scale of these jobs cuts is higher than had been previously speculated on and come as a devastating blow to managers and professionals represented by Prospect".

As part of the restructuring the firm will abandon its London HQ in favour of 30 "modern strategic sites".

"We will certainly have a headquarters in London; this is not BT moving out of London".

The latest round of job cuts and restructuring was announced as BT delivered a three per cent drop in fourth-quarter revenue to £5.96bn.

The company also spent around £22 million on professional costs relating to the investigation into its Italian business.

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