BTis
to lay off 10,000 workers as it tries to counter a margin squeeze
as the world lurches into recession.
A BT spokesman said 4,000 of the planned lay-offs have already
taken place through voluntary redundancies and normal attrition.
Another 6,000 will go in the next six months from all sectors of
the business, he said. "It's everyone from IT consultants to call
centre workers in the UK and India."
The UK's biggest telco reported a 4% growth in sales to £5.30bn,
but earnings before interest, tax, depreciation and amortisation
dropped one percent to £1.43bn. This was due mainly to lower
profits from the Global Services division, which grew 15% in the
quarter, signing new business worth £1.8bn.
BT CEO Ian Livingston said, "Demand for our BT Global Services'
proposition remains strong. What we have to do now is translate
revenue growth into better profitability."
BT's underlying businesses were generally strong but showed
evidence of increased competition and tightening margins. Managed
solutions revenue, including MPLS and networked IT services,
increased 23% to £1.52bn, and broadband and convergence revenue
increased 2% to £649m.
This was partially offset by an 8% decline in revenue from calls
and lines to £1.6bn, and a 4% drop in revenue from transit,
conveyance, interconnect circuits, WLR, global carrier and other
wholesale products to £822 million.