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More jobs to go at BT
1,500 at BT Ignite offered voluntary redundancy
BT has upped the number of job cuts to 6,000 from a previous 5,000. The new cuts will come from its Internet services arm BT Ignite where 1,500 people will be offered voluntary redundancy.
A spokesman told us: "Our intent is to reduce the number of people in BT Ignite through natural wastage, re-skilling and targeted voluntary redundancy."
Yesterday BT announced its Q1 results, which saw profit drop 71 percent to £186 million but with increased revenues of £5.45 billion - up 15 per cent year-on-year. BT Ignite reduced its loss from £101 million to £78 million.
Share price dropped by four cent but quickly recovered when it became clear that the poor results were to be expected. A large increase in debt interest payments was responsible was a good proportion of the profit drop. Losses at two European mobile companies was responsible for most of the rest of it.
BT's £30 billion debt has caused the downfall of its FD, chairman and the ruin of its CEO. New chairman Sir Christopher Bland has spend his first few months at the company tackling the debt problem.
He has now reduced it to £17.5 billion by selling Asian companies and stakes in European mobile companies. ®