BT has said it will cut 4000 jobs globally and reduce director bonuses after the Italian accounting scandle which happened earlier in the year. BT’s latest results indicate that it has suffered a 19% drop in pre-tax profits.
BT has said the roles going would be in the back-office and managerial sectors as it looks to simplify its Global Services operations.
CEO Gavin Patterson won’t be getting a bonus at all this year, a move which apparently he agrees with and has indicated he wouldn’t have accepted it. He’ll have to make do with his basic salary which was reportedly £969,000 in 2016.
Patterson stated, “This has been a challenging year for BT. We’ve faced headwinds in the UK public sector and international corporate markets and must learn from what we found in our Italian business. Openreach also received a fine from Ofcom after an investigation into historical Deemed Consent practices revealed it fell short of the high standards we expect. We take these issues extremely seriously and are putting in place new measures, controls and people to prevent them happening again. Learning from the challenges of this year will make BT a stronger company for the future.”
Paolo Pescatore, VP, Mulitplay and Media, CCS Insight commented on the results, he said “These latest results are not stellar given the challenging end to its financial year. Despite ongoing concerns, BT Consumer and more so EE continues to stand out from the other business units.”
“Overall, it has been a tough year for BT. The Italian scandal coupled with the Ofcom have hit the company quite hard. Furthermore it has had to deal with a barrage of pressure from rivals for an independent Openreach. Finally, a deal with Ofcom regarding Openreach has been agreed it now has some regulatory certainty to continue investing for the future. And it now has a significant mobile business with EE which it can leverage without having to depend on other areas.”