British Telecom to Cut another 10 thousand Staff
www.bt.com
British Telecom is getting ready to cut another 10,000 workers from their workforce. This major redundancy program is set to be announced in May, along with a set of figures for the end of the year, which will include about £1.5 billion in provisions. The cuts in jobs are in addition to the 10,000 redundancies that the company announced last year. British Telecom is going to spread the cuts throughout their entire 160,000 international workforce.
The broadcasting company’s results are expected by many to be some of the worst in the history of the company, with poor performance financially. These figures will mark one of the lowest points in the history of British Telecom since its 1984 privatization. The company is valued at £6.3 billion at a share price of 81p.
Sir Mike Rake, the Chairman, and Ian Livingstone, the Chief Executive, are understood to be looking to get a majority of the bad news out of the way during the announcement of their results next month. Some commentators predict that the redundancies may be worse than the anticipated 10,000.
During the announcement, the management intends to present a business that has profits, cash flow, and a sustainable dividend policy. However, analysts have warned previously that the dividend of British Telecom is one of the main props to their share price. The management hopes, though, that one round of hard-hitting actions to reduce debt, deal with the issues in their Global Services arm, and tackle what will likely be a pension deficit of billions of pounds is going to draw a line under the challenges facing the company.
Go to www.bt.com to learn more.