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BT expected to sack 10,000 and write off £1.5bn

Ian Grant

BT is expected to put its "toxic assets" into a separate business unit and sack thousands of staff on Thursday 14 May.

The reorganisation, expected when BT CEO Ian Livingston announces financial results for the UK's biggest telco, will split the troubled Global Services division into three, according to reports in the Sunday Times.

The reorganisation, which BT does not deny, is due to cost overruns on big contracts with the NHS and Reuters. BT will set aside £1.5bn to cover these costs and the costs of the reorganisation, which include laying off 10,000 of BT's 150,000 staff, the paper said.

One unit, led by Michael Boustridge, who already runs BT in America and Asia-Pacific, will contain Global Services' 400 top international clients.

Another will look after Global Services domestic customers, although the NHS contract will have separate management. The third unit will look after the rest of the contracts, including acquisitions.

BT has three crucial pieces of the NHS's National Programme for IT together original worth more than £2bn. These are

  •  The Spine - the national electronic patient record database and messaging system (£620m)
  • N3 - the fast, secure, national broadband network (£530m)
  • London local service provider - integrated local patient record applications and IT systems (£996m)

It has subsequently won more NHS business since the NHS sacked Fujitsu from the NPfIT.


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