BT has said its Global Services group will take a one-off charge of £340m as a result of financial and contract reviews, which will negatively impact the company's financial results. The company updated the city this morning ahead of its fourth quarter 2008 results, which are due on 12 February.
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The company said it has identified a number of cost saving opportunities around access costs, external procurement, total labour resource, and networks and systems.
"We expect to see the impact of these programmes in the 2009/10 financial year and beyond," BT said.
Ian Livingston, chief executive of BT, said, "The first job of the new management team in Global Services and the new group finance director has been to review the financial position of Global Services and its major contracts.
"These ongoing reviews reflect changed circumstances and a more cautious view of the delivery of cost efficiencies and contract performance, particularly in the light of the current economic climate.
"We have also initiated a review of Global Services' operations, which will help us drive our cost saving initiatives and further enhance our ability to serve customers."
He added, "The performance of the rest of the group is ahead of expectations for the third quarter but unfortunately this will be more than offset by the issues in Global Services."
Last year, BT Global Services said it would be outsourcing its IT operations.