BT has reported an annual loss of £134m and said that it will cut another 15,000 jobs this year. The telecoms firm blamed the poor performance of its Global Services division for the losses.
The company has already reduced its workforce by around 15,000 – and will cut a similar number this year in an attempt to reduce costs. BT hopes the cuts will come through natural wastage and voluntary redundancies.
BT has overestimated the value of many of the contracts at Global Services division, the firm’s outsourcing arm, and has had to take a write-down of around £1.5bn on the unit.
BT CEO Ian Livingston said: “Three out of four of BT’s lines of business have performed well in spite of fierce competition and the global economic downturn. However this achievement has been overshadowed by the unacceptable performance of BT Global Services and the resulting charges we have taken.”
For the financial year ended March 31, BT revealed pre-tax losses of £134m, with revenue rising to £21.4bn from £20.7bn.