BT has announced that it will cut 13,000 jobs or around 12 per cent of its workforce over the next three years as the telecom looks to reduce its management and office positions.
These job cuts and other measures are aimed at helping the telecom reduce its costs by £1.5bn though it does plan to hire an additional 6,000 employees to improve its customer service and network deployment.
A third of the job cuts announced by BT will come from outside of the UK in its Global Services division. The company is also planning to relocate its central London headquarters to smaller premises to reduce costs.
BT is tightening its operations in an effort to be more lean and agile which will allow the company to keep up with increased competition from established businesses and newcomers in the industry. The announcements came on the heels of BT disclosing that its annual pre-tax profits rose by 11 per cent to £2.6bn in the year to March.
The company also announced a 13-year plan to correct its £11.3bn pension fund deficit through regular payments and a bond issue.
BT's Chief Executive, Gavin Patterson highlighted the firm's unique position, saying:
"We have the UK's leading fixed and mobile access networks, a portfolio of strong and well segmented brands, and close strategic partnerships. This position of strength will enable us to build on the disciplined delivery and risk reduction of the last financial year, a period in which we delivered overall in line with our financial and operational commitments whilst addressing many uncertainties."
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