BT may be on course for worst quarter ever


BT may be on course for worst quarter ever

Alex Scroxton

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.

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