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BT announce job cuts following 11 per cent profit slide.
Thursday 13 November 2008 12:00:37 by John Hunt

BT are reporting revenue up 4 per cent and profits down 11 per cent (before tax) in their second quarter results covering the half year to September 30 2008. The share price surged 11 percent this morning on news that 10,000 jobs would be cut by March 2009 mostly from agency, contract and offshore workers representing a 6% reduction in their global workforce. This is a move to try and reduce costs and head profits back in line during a difficult financial period.

"Three out of our four business units, BT Retail, BT Wholesale and Openreach are delivering on or ahead of target. But profits in BT Global Services are simply not good enough and we are taking decisive action to put matters right. We have appointed Hanif Lalani as the new CEO of BT Global Services and he will continue to grow the business while reducing the cost base."

Ian Livingstone (CEO), BT Group

With total revenue at £5,303 million, BT are no force to shun, and they have seen continued growth in both managed solutions convergence, and broadband revenue. The total number of wholesale broadband connections (including LLU) were clocked at 13.3 million on September 30th, with 5.1 million of these being unbundled lines. The quarter saw 258,000 net additions to the broadband services, of which 27% (69,000) belonged to BT Retail keeping them in the number one spot as the UK's largest broadband provider encompassing some 34% of the market (4.6 million customers). BT Vision, the (IPTV) television service that uses your broadband connection has 340,000 customers with 83% of new customers choosing to take a subscription pack, three times as many as last year.

BT Wholesales revenue totalling £1,168 million was hit by a decline of about 7 per cent, an improvement over the first quarter. £39 million of this was put down to migrations from BT services to LLU. Gross profit decreased by 12% to £359 million. Conversely, BT Openreach saw an increase in external revenue up to £237 million, a rise of 14 per cent on last year. This reflects the increase in provisioning of services using LLU and WLR. Total revenue for Openreach was £1,303 million, remaining broadly flat with operating profit of £300 million.

BT's 21st Century Network (21CN) continued roll out and passed 8 per cent of the UK market by the end of September and is reported to be on track to meet 40% in the next 6 months up to April 2009, and 60 per cent by March 2010. Only 8 providers were marketing the new services to customers.

Comments

Posted by GMAN99 over 8 years ago
Its actually 6,000 to go, 4 of the 10k have already gone.
Posted by CaptainW over 8 years ago
That's a lot of people! I didn't realise BT actually had that many contact centre operators, never mind being able to get rid of that amount. So, who's going to answer the phones, do the contracting and such likes. My mate was speaking to a BT engineer the other day who says they are stretched to the max at the minute!
Posted by GMAN99 over 8 years ago
They'll still be 150,000 left :)
Posted by CaptainW over 8 years ago
Oh well at least they'll have some people left :D

How many people do they employ call centre wise, taking calls out of that 150k?
Posted by andys999 over 8 years ago
oh dear, what a shame, how sad!!lol
its well known bt had this planned 2 years ago-to pay for the fibre cabling they are SO CALLED rolling out.20 years to late mr buzby!!
mobile broadband THATS the future this mini laptop i got from voda with built in sim is great 6mb speed no mac codes or indian call centres to worry about!!!!
Posted by Dawn_Falcon over 8 years ago
Great. What's your data excess charge?
Posted by GMAN99 over 8 years ago
"oh dear, what a shame, how sad!!lol"

Your laughing at people losing their jobs? Go you.
Posted by MC1234 over 8 years ago
Profit down 1% not 11% !!
Posted by CARPETBURN over 8 years ago
quote"Your laughing at people losing their jobs? Go you."

Yeah that can be argued to be out of order, so ill just laugh they lost money instead :D
Posted by andys999 over 8 years ago
oh dear, what a shame how sad, aimed at bt. Not the poor cxxxs who are brainless enough to work for them at a poxy agency for them at £6.25 ph!!
bt still stuck on the monopoly board thinking they godam own everything-they dont really tell folks they are now split into 5 seperate companies.
na couldnt have happend to a worse bunch of crooks.
by the way dont pay excess data charges i stick to my 3gb monthly allowance ample enough.
Posted by GMAN99 over 8 years ago
You really know your stuff...
Posted by chrimbow over 8 years ago
I feel sorry for the staff, ordinary people suffering as usual at the hands of totally inept management. If Bt got their act together with quality product service an decent backup then they would be coining it in. All these cuts will do is make things worse
Posted by comnut over 8 years ago
damn right there chrimbow.... :( trouble is they are so big a company they dont even see it....
Posted by Spectre_01 over 8 years ago
Ya damn right!!! what we need is a company like Comcast to take over the nations telecoms...
Posted by andys999 over 8 years ago
what would be better is for all lines to be opened up not just llu-and get rid of bt full stop+pull that horrendous bt tower down.
Posted by Spectre_01 over 8 years ago
what other lines do you speak of?
Posted by CARPETBURN over 8 years ago
quote"Ya damn right!!! what we need is a company like Comcast to take over the nations telecoms..."
1 Comcast is a cable company, a company which charges a damn site less than BT and provides the consumer MORE
2 BT already own the nations telecoms (who else has exchanges for telephone services in mass)
3 BT and their shareholders are brainless (SELF EDIT)
4 Someone mentioned agency workers and is to a degree right, a substantial part of their workforce nowadays are abroad or employed short term through an agency.
Defending them is laughable
Posted by Spectre_01 over 8 years ago
Maybe go on youtube, search under 'comcast' and listen to what their customers have to say. Far too easy to think the grass is greener.
Posted by CARPETBURN over 8 years ago
quote"Maybe go on youtube, search under 'comcast' and listen to what their customers have to say. Far too easy to think the grass is greener."

Complaints from Americans that know no different... For around £30 quid a month on comcast you get HD TV with more channels than we do in the UK.... Faster upload speeds on broadband than many in the UK, broadband you can use away from home (not tied to just your home phone number), oh and a selection if you are willing to pay for it of REAL FIBRE based services.... Dont even dare try to compare them to the skinflints named BT
Posted by CARPETBURN over 8 years ago
In regards to caps and limits on broadband also most services they offer have far bigger limits than anything BT offer us.
Posted by Somerset over 8 years ago
Maybe £30/month in US, what would the equivalent be in the UK? £60?

How do Comcast costs etc. compare to VM?
Posted by Somerset over 8 years ago
Why not suggest Comcast take over VM?
Posted by Spectre_01 over 8 years ago
hahaha awesome, you'll listen to people moaning about BT and accept that but not Americans saying the same (and worse) about Comcast, ignorance is bliss...
Posted by CARPETBURN over 8 years ago
quote"Maybe £30/month in US, what would the equivalent be in the UK? £60?

How do Comcast costs etc. compare to VM?"

No LOL i did that conversion.... You get TV, faster upstream broadband etc for $60 dollars or roughly without getting out the calculator £30
quote"Why not suggest Comcast take over VM?"
I wouldnt want any cable service, mainly cos the payment for TV channels would be a waste as i hardly watch TV, then again Comcast couldnt screw cable in this country more than virgin have.
Posted by CARPETBURN over 8 years ago
quote"hahaha awesome, you'll listen to people moaning about BT and accept that but not Americans saying the same (and worse) about Comcast, ignorance is bliss..."
Actually ive had my own issues with the idiots named BT, i dont need to listen to any hearsay about them. Americans think comcast are bad as they introduced limits, as i stated they know no better, they have never came across monthly caps before they got given one. I think you will find thats most of the complaints Americans have about comcast. The rest is about TV quality from idiot yanks still on an analogue cable service.
Posted by Spectre_01 over 8 years ago
Wow lame answer... why even bother. Look into it properly or don't bother.
Posted by Somerset over 8 years ago
Typically something in US dollars ends up being the same in pounds over here?
Posted by CARPETBURN over 8 years ago
quote"Wow lame answer... why even bother. Look into it properly or don't bother."
Actually its a very accurate answer i have relatives that recently moved to the states, the reasons i gave are the reasons Americans have been complaining about comcast.... Nothing more!
Posted by JPickering over 8 years ago
GMAN99 you are right - 4,000 have gone already.
I just hope the Next 6,000 employees to be asked politley to leave get a bit more notice than the 24 HOURS that I got from that "Excellent" Company BRITISH TELECOMISH
Posted by JPickering over 8 years ago
Sorry I forgot to add - BT That careing Company who last Christmas Laid us Off for THREE Weeks over Christmas - Without PAY!!!
Our Caring Manager - QE2 For a THREE WEEK CRUISE
Posted by CARPETBURN over 8 years ago
If you believe some hear Jpickering they will tell you BT are a caring company that puts customers and lower level staff first... Of course your posts show they treat staff and customers like dogs and the senior staff only care about their pockets, whinging shareholders and staff lay offs.... What a truely lovely company.
Posted by Spectre_01 over 8 years ago
What was your job JPrickering?
Posted by Somerset over 8 years ago
I suspect JPickering was a contractor, maybe that's one of the hazards of being one. Could he tell us what he is paid per hour.
Posted by CARPETBURN over 8 years ago
I dont think it matters what he was paid, if it was that much than maybe the savings BT have made will be passed onto the customer..... Opps silly me i was dreaming for a second.
Posted by JPickering over 8 years ago
I was Agency staff carrying out LLU Bulk Migration for £11 an Hour. But obviously no work no pay. And only the need to tell you the night before that you have no more work.
Posted by Spectre_01 over 8 years ago
wow, only £11 per hour! I think you signed on with the wrong agency then, alot of the frames agency workers I spoke to were getting paid for each jumper they ran and a rate good enough to make the BT frames staff quite envious, 3-4 per jumper if I remember rightly but whatever it was it was enough to get them up in arms at the union meetings.
Posted by Spectre_01 over 8 years ago
Here's the rub though as you discovered, when you work for an agency in that capacity its obvious that its a temporary position, the bulk LLU migrations were to hit a deadline and you were drafted in to help with that, once the project was completed you were no longer needed. Did you expect BT (openreach) to continue employing your agency once the work was completed and the extra man power was no longer needed?

Posted by Spectre_01 over 8 years ago
Sounds to me your gripe is more against the agency and they way it was managed being on call with next to no notice but then you would have been paid more then the equivilant Openreach exchange jumper runner, or atleast you should have been but sounds like your agency screwed you, unfortuantly if that really was the deal you signed up to then you did yourself a disservice.
Posted by Spectre_01 over 8 years ago
As with taking on any job, if you don't like the terms of employment or the rate of pay then don't sign up. If you want a permanent position then look for one but don't be suprised if you sign up with an agency on a temporary basis to lose your job when the work dries up - sorry mate.
Posted by CARPETBURN over 8 years ago
On the other hand if the agency were only paying him 11 quid an hour i wonder what BT were paying the agency??? They then wonder why profits have gone down 11%
Posted by Spectre_01 over 8 years ago
Actual figures aside, more often then not agency workers cost more then direct labour, atleast their hourly rate does - weather the agency passes that on to the actual worker is another issue.

However BT would have made savings in National Insurance, pension's contributions and of course not having to pay out any severance packages once the work was completed and the extra staff were no longer required. On the whole it works out cheaper for the host company and hence why agencys are used.
Posted by CARPETBURN over 8 years ago
quote"On the whole it works out cheaper for the host company and hence why agencys are used."

That actually depends on several things like what the agency charges you, how long you need the staff for and lots more (I should know i used to hire agency staff). Whatever BTs choices are regarding staff and other expenses they cant be that good to see profits drop 11%
Posted by Spectre_01 over 8 years ago
I think you just focused in on one part of my post and missed the rest. So do BT have to pay Pensions and NI for the agency staff?

In terms of profits its just a good thing they weren't permanent staff, otherwise it would have been more difficult/costly to get rid of them to recover those profits.

You can try to spin this anyway you like fact is hiring agency staff has given flexablity and proved to work out well for them.
Posted by CARPETBURN over 8 years ago
quote"I think you just focused in on one part of my post and missed the rest. So do BT have to pay Pensions and NI for the agency staff?"
There are other costs involved to a business when hiring agency workers.
quote"In terms of profits its just a good thing they weren't permanent staff, otherwise it would have been more difficult/costly to get rid of them to recover those profits."
LOL wouldnt of mattered much with an 11% profit loss.
uite how its worked out well when they are still in the financial red is anyones guess... Must be a BT supporter thing the rest of us dont get.
Posted by Spectre_01 over 8 years ago
I guess i'd sound like a BT supporter to someone bent on being anti-BT in every thread he responds to.

I just enjoying a good discussion.
Posted by Spectre_01 over 8 years ago
By the way, profits down 11% don't mean they are making a loss. It means profits are down lower then they were, nothing more. And lets not forget that revenue is still up 4% so business is good.

To put it in simple terms for you, if I ran a small business making £100 a day and this then went down to £89 a day that is a decline of 11%, far from being a loss and still profitable.
Posted by CARPETBURN over 8 years ago
quote"By the way, profits down 11% don't mean they are making a loss. It means profits are down lower then they were, nothing more. And lets not forget that revenue is still up 4% so business is good."
You have a funny idea of "business" and "good"
quote"To put it in simple terms for you, if I ran a small business making £100 a day and this then went down to £89 a day that is a decline of 11%, far from being a loss and still profitable."
Do yourself a favour..... Never ever start a business
Posted by Spectre_01 over 8 years ago
Already have, and we're doing quite well. After reading throughout your comments here and in other threads its painfully obvious your only intrested in trying to discredit BT wherever possible and are quite happy to warp your arguements accordingly.
Posted by Somerset over 8 years ago
Carpetburn - please try writing as an intelligent adult. Or does that explain things...!
Posted by CARPETBURN over 8 years ago
quote"Already have, and we're doing quite well. After reading throughout your comments here and in other threads its painfully obvious your only intrested in trying to discredit BT wherever possible and are quite happy to warp your arguements accordingly."

I think its you trying to defend them, ive said nothing which isnt in the news story
Posted by CARPETBURN over 8 years ago
quote"Carpetburn - please try writing as an intelligent adult. Or does that explain things...!"
Couldn’t understand you due to not using capital letters in the right place and substituting a question mark for an exclamation point.
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