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Concerns as BT job cuts predicted


BT set to announce further job cuts

BT set to announce further job cuts

BT set to announce further job cuts

Telecoms giant BT is expected to announce plans to cut a further 5,000 jobs when it unveils full-year results this week, it has been reported.

The group is already thought to have cut 35,000 jobs since the beginning of 2008, exceeding its target by 5,000, according to the Sunday Telegraph newspaper.

But despite this, Tony Chanmugam, BT's finance director, is understood to be aiming to cut at least a further 5,000 posts during the coming year.

The group had pledged to cut 15,000 jobs in the year to the end of April, on top of the 15,000 it had already cut during 2008.

It is thought the majority of the reduction was to UK jobs, although the cuts applied mostly to agency staff and temporary workers, rather than full-time BT employees.

If the group does go ahead with plans to slash a further 5,000 jobs, it will have reduced its workforce from 162,000 at the beginning of 2008, to 122,000.

The job cuts were part of the group's plans to drive down costs, with savings expected to total £2 billion in the year to April.

BT is expected to return to profit this year, following last year's £134 million loss, with analysts pencilling in pre-tax profits of £1.06 billion for the year to March 31.

The group sunk into the red after it took a mammoth £1.9 billion writedown and suffered losses at its Global Services arm.

But despite returning to profit, it continues to face problems over its pension scheme's funding shortfall.