Saturday, May 16, 2009

BT Global Services to be broken up

BT is restructuring its struggling Global Services business to focus on three separate areas after its "unacceptable performance" led to the group losing more than £1.3bn.

BT Global Services recorded an operating loss of £134m. It lost £1.2bn due to cost overruns on big contracts with the NHS and Reuters and another £100m on other smaller contracts.

read Karl Flinders Original article...


Thursday, May 14, 2009

Further BT Job Cuts 15,000, this year and more in 2010

Things continue to look gloomy for BT. This mornings announcement seems to have been a bigger surprise than had been expected.

BT suffered a 40% slump in pre-tax profit during the fourth quarter, forcing the firm to slash its dividend and announce plans to axe another 15,000 jobs. Fourth quarter pre-tax profit plunged to £429m from £714m a year ago and by 21% for the full year to £2.08bn.

The firm also reminded us that it had cut 15,000 posts in the last 12 months, 5,000 more than they said they would. This morning they joined Banks & Miners amongst the FTSE's largest fallers.

BT's stated aim is to cut the jobs through natural wastage, non replacement and voluntary redundancy and had no plans for compulsory lay-offs. With some suggestion that it'll be even more agency staff going.

Next Generation Communications platforms, Ethernet-based solutions, unified communications applications, and International Private Leased Circuit (IPLC) are key are to BTs ability to compete at home and abroad. BT cannot afford to fall behind the innovation curve

It seems to me that the right thing to do no matter how painful is to follow C&Ws lead - look at the skills they absolutely must have in their company and organise their people accordingly.