Telecommmunictions giant, British Telecom (BT) is set to cut thousands of jobs in a bid to save £500million over the next three years
The Financial Times reports that BT could cut 6,600 jobs when the company announces it’s yearly results next week. BT has however not commented on the report.
Analysts speaking to the financial times have said that they expect BT to make compulsory redundancies across the company’s 106,000-strong workforce worldwide.
According to FT, if the process sails through, it would be the largest round of job cuts in almost a decade.
BT cut 30,000 jobs in 2008 and 2009 due to problems with the company’s international business.
Speaking to Wake up to Money, economist Simon French has said: “The big telecoms companies are at the forefront of moving their businesses over to digital and that will mean less employees.”
He also said that BT badly needs to cut costs to deal with with a “huge” pensions deficit that is affecting the companies share price.
BT chief executive Gavin Patterson spent billions last year buying up expensive football rights to try and lure customers to its paid TV service.
The telecoms company also spent £12.5billion to acquire EE, who were then the UK’s largest mobile provider.
BT acquired EE for £12.5 billion last year.