BT has hit back at rumours that it is on the verge of slashing
10,000 jobs across its global business after another disastrous
quarter, describing the figures as "typical speculation".
Preliminary full-year results are due in May, and in recent days
it emerged that the fourth quarter to the end of March may well
have been BT's worst since it floated in 1984. The firm is
struggling to fill enormous gaps in its pension fund and according
to reports in the Sunday Times will write down another £1.5bn.
Once again, its struggling Global Services division is taking
the brunt of the losses, with massive overspend on key contracts to
blame.
Note that if more positions were to go at BT the timing would
reflect badly on the firm given the purchase over the weekend of
disgraced Indian IT services giant Satyam by BT-backed Tech
Mahindra. The joint venture between BT and Mahindra, which was set
up in the 1980s, is said to rely on BT contracts for more than 50%
of its sales.
BT's shares hit a record low of 77p on Tuesday morning.
This story originally appeared on
Microsope.