British Telecom (BT) to Slash 16 Percent of Workforce and Move HQ
The good news given by Gavin Patterson, CEO of the UK’s largest carrier following their Q4 2017 earnings announcement yesterday, is BT delivered “a solid set of financial results in the fourth quarter.” With growth in their consumer divisions offset by declines in their enterprise businesses, Patterson said the results were due to “both challenging market conditions and our decision to exit lower margin business.”
The bad news, is they are cutting 13,000 jobs from their 80,000-strong international workforce. BT’s corporate headquarters will also be moved out of London for the first time in the company’s 150-year history. One third of the job-cuts will also be made to the company’s foreign workforce of 18,000, Reuters reported.
The reason given by BT for the cuts, is relieving the company of almost US$2.2 billion worth of operating costs after at least a year and a half of poor corporate performance.
In a statement following announcement of the cuts, the company’s chief executive Gavin Patterson called the moves, “Probably the most significant transformation we have made in the last 10 years. We need to do this to be competitive in the future. If we are compared with our peers we are frankly too complex and overweight. While I recognize the pain, ultimately it is the right thing to do for the business.”