BT to axe 10,000 jobs

UK phone giant BT saw its share price boosted by 11 per cent after it announced intentions to cut 10,000 jobs and posted net profit growth of 18 per cent.

The employment reductions will be completed by March 2009 and form part of the company’s continued strategy to reduce costs by £800 million.

The job losses represent six per cent of BT’s total workforce and will mostly affect those employed through outside agencies, contractors and offshore workers.

BT’s net profit for the three months ending on September 30th amounted to £400 million, up from £339 million in the previous year.

Source: Associated Press