BT to cut 4,000 jobs amid 19% pretax profit fall

BT is cutting 4,000 jobs after reporting a pretax profit fall of 19% to £2.35bn.

BT boss Gavin Patterson
BT boss Gavin Patterson

The telecoms giant's reported revenue was £24.06bn, up 27% for the year ending 31 March. BT said its earnings were in line with forecasts it downgraded in January.

The loss comes after BT was fined £42m by Ofcom and £300m in corporate customer compensation after its Openreach infrastructure arm was ruled to be hindering rivals Sky and TalkTalk from installing high-speed internet lines.

BT has since agreed a deal to legally separate Openreach from the rest of the group.

Adjusted pre-tax profit, excluding specific items, rose 5% to £3.5m, while underlying earnings (Ebitda) increased 18% to £7.7bn.

Today’s earnings included a £300m restructuring charge over the next two years. Chief executive Gavin Patterson is looking to cut 4,000 managerial and administrative jobs and invest more in customer service and broadband upgrades. 

Neither Patterson nor finance director Tony Chanmugam will receive bonuses this year, with the latter stepping down to take up a new role overseeing the integration of EE into BT. Chanmugam will be replaced by BG Group finance director Simon Lowth in July. 

Patterson said: "Our integration of EE is going well, our UK consumer, SME and corporate businesses are performing strongly, and we’ve made significant progress in improving customer experience across the group.

"Our agreement with Ofcom on Openreach governance brings to an end a period of uncertainty. And securing exclusive rights to top-flight European football until 2021 puts our consumer businesses in a strong position."

Topics

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Share

1 Why your iPhone is killing your creativity

Every day, the insatiable parasite that is your smartphone makes you worse at your job, writes a group creative director at Ogilvy.

Case study: How 'This girl can' got 1.6 million women exercising
Shares0
Share

1 Case study: How 'This girl can' got 1.6 million women exercising

"This girl can" was based on a powerful insight: that the fear of judgement by others is the primary barrier holding women back from participating in sport.

Just published

More