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BT to slash 13000 jobs - will Sevenoaks office be hit?

11 May 2018

Patterson said: "BT delivered a solid set of financial results in the fourth quarter, with growth in our consumer divisions offset by declines in our enterprise businesses, due to both challenging market conditions and our decision to exit lower margin business".

BT added that it would be hiring around 6,000 new employees "to support network deployment and customer service".

It is just a year since BT announced 4,000 job cuts.

The announcement comes almost a year after BT said it was to axe 4,000 jobs as part of a restructuring of its Global Services unit.

The jobs - mainly back office and middle management roles, two-thirds of which are UK-based - will be lost over the next three years, and forms part of a major new three-year strategy to "reshape the business to meet the demand for converged products".

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BT said that the majority of the redundancies will come from back-end roles and mid-management, adding that simplifying its structure will result in "fewer, bigger, more accountable leadership roles". "We recognise that it is going to affect a lot of people but ultimately we need to do these things to ensure that we remain a competitive business going forward and that we can benchmark our performance against peer companies".

BT said it was also trying to improve productivity across its core United Kingdom operations, including "process simplification and automation to reduce costs".

"Many of the roles that BT is proposing to cut are highly skilled professionals and the loss of that expertise could impact BT's research and innovation capability", warned Prospect national secretary Philippa Childs.

BT is focusing on investing ultrafast broadband and to lead in 5G.

Prospect, the union representing 140,000 public and private sector workers such as engineers and managers said the larger-than-expected cuts will be a "devastating blow" to its members and sounded "unrealistic". The company is also planning to relocate its central London headquarters to smaller premises to reduce costs.

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Around 80 per cent of its staff are now based in around 50 locations, with some cities hosting multiple offices.

"We will certainly have a headquarters in London; this is not BT moving out of London". The restructuring will cost £800 million to implement. For the 10 years from April 1, 2020, to March 31, 2030, BT will make annual payments of around GBP900 million towards its pension scheme.

Chief Executive Officer of the company, Gavin Patterson also sought to placate shareholders by maintaining BT's dividend and agreeing a new pension funding plan but a forecast that it would take up to three years to return to profit growth sent the shares down 9 percent.

The shares, down 22 percent this year, are trading at levels last seen in 2012.

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BT to slash 13000 jobs - will Sevenoaks office be hit?