BT (LON:BT.A) have announced plans to cut 13,000 jobs over the next three years, aiming to cut costs by £1.5 billion after a disappointing set of full-year figures.
A third of the job cuts will come from outside the UK in its Global Services division, with the group saying it had to make changes in order to meet “increasing competitive intensity from established companies and new entrants”.
13,000 jobs will be cut from its management and back-office roles, but added that it would be hiring a further 6,000 employees to “support network deployment and customer service”.
The announcement came alongside the group’s full-year figures, with pre-tax profit rising 11 percent and revenue down 1 percent, missing management’s expectations.
However, firm confirmed that it had agreed a £11.3 billion pension deficit with trustees, to be paid over a 13-year recovery plan including payments of £2.1bn over the three years to 31 March 2020. A further £2 billion contribution will be funded by the issuance of bonds, the firm said.
“This means that the recovery plan includes material contributions by BT to the Scheme of £4.5 billion by 30 June 2020, when the next valuation is expected to take place,” BT said
BT provided an update on the progress of its restructuring plan, which remains on track. It will now focus on delivering differentiated customer experiences, investing in integrated network leadership, and transforming our operating model.
“The integration of EE into BT is delivering run rate cost synergies of £290m. Our restructuring programme has removed over 2,800 roles and delivered savings of £180m during the year,” the firm said.
Shares in BT Group are currently trading down 7.10 percent on the news, at 221.65 (0811GMT).
