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BT to cut 4,000 jobs after accounting scandal and profit warning

Almost £8bn was wiped off BT’s market value in one day after it slashed its forecasts due to an accounting scandal

Telecoms giant BT has announced that it will be cutting 4,000 jobs during the next two years, as it struggles to recover from an accounting scandal, profit warning and to enable it to navigate general market pressures.

The roles being slashed include managerial and back office jobs, as part of a process designed to “clarify accountabilities, remove duplication and improve efficiencies”.

“The cost savings will provide headroom to offset market and regulatory pressures, and support increased investment in delivering great customer experience and leading networks,” BT said.

BT has revealed that the restructuring, which would cover its Global Services unit, group functions and technology operations would cost around £300m.

Neil Wilson of ETX Capital said, “It’s been a pretty torrid time for BT management and shareholders of late and there is not a lot of good news in today’s full-year earnings report.”

BT has had a rocky start to the year – in January, almost £8bn was wiped off BT’s market value in one day after it slashed its earnings forecasts and said that an accounting scandal in its Italian business had been far more severe than previously expected, also leading to the departure of BT’s Europe chief.

In March, the telecoms company was slapped by regulator Ofcom with a record fine of £42m and agreed to pay it’s rivals as much as £300m, after it admitted to breaching rules by failing to compensate other operators over delays to installing Ethernet lines.

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