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BT to cut 10,000 jobs

13/11/2008

Telecoms giant BT says it plans to cut 10,000 jobs by the end of the current financial year, despite reporting a four per cent revenue increase in its second quarter.

It achieved pre-tax profit of £590 million, down 11 per cent, while earnings per share slipped three per cent.

Chief executive Ian Livingston said its retail, wholesale and openreach divisions had all delivered on or ahead of target but said profits in global services were "simply not good enough".

"Demand for our BT Global Services proposition remains strong, revenue grew strongly in the quarter and the pipeline is healthy. What we have to do now is translate revenue growth into better profitability," he added.

The group said in its half-year results release that the 10,000 job cuts would take place as part of its "ongoing efficiency programmes".

Most of the reductions would be made in the area of indirect labour, including agency, contractors, subcontractors and offshore workers.

Shares in BT jumped over ten per cent in early trading and stood at 124.40p at 8:40 GMT.