BT to cut 13000 jobs and leave London HQ

BT to cut 13000 jobs and leave London HQ

BT to cut 13000 jobs and leave London HQ

BT's St Paul's headquarters is set to close.

BT outlined its biggest revamp in more than a decade yesterday, including plans to cut 13,000 jobs and leave its central London headquarters, as the telecoms group sought to fix its shaky finances and draw a line under years of poor performance.

TELECOMS giant BT is to axe 13,000 jobs as part of a revamped cost-cutting drive - with two thirds of them set to go in the UK.

He said around 80 per cent of its staff were based in around 50 offices across the United Kingdom and that this will be cut to 30 "modern, strategic sites to create a more collaborative, open and customer-focused working culture".

BT, which owns Britain's biggest mobile operator EE, said it would hire about 6,000 new engineers and front-line customer service staff to support its rollout of fiber and 5G networks.

More than half of these new jobs had already been announced by Openreach, BT's broadband infrastructure standalone subsidiary.

BT is also planning to move out of its London headquarters in St Paul's, where the company has been based since 1874.

Gavin Patterson, BT chief executive, said: "We provide products and services that are essential to both consumers and businesses, delivered through multiple channels to suit their needs".

"This is probably the most significant transformation we have made in the last 10 years", said Patterson. If we are compared with our peers we are frankly too complex and overweight.

He added that it was the "right thing for the business" and would help take BT "into its next chapter".

"It is particularly disappointing as Prospect has been working closely with BT to ensure that the impact of organisational changes including restructuring and re-organisation have been thoroughly examined but this number sounds unrealistic".

Despite this, Prospect union national secretary Philippa Childs said BT had ordered a "devastating blow" to the staff it represents, calling the job cut figure "unrealistic".

The declared reason for the cuts has been to relieve the company of nearly US$2.2 billion worth of operating costs after at least a year and a half of poor corporate performance.

On the surface of it, things are going pretty swimmingly for BT, which just announced annual pre-tax profits of £2.6bn - a rise of 11% year-on-year.

The company also revealed a 13-year plan to plug its £11.3bn pension fund deficit, including regular payments into the scheme and a bond issue.

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