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| BT to shed 10,000 jobs by March | BT to shed 10,000 jobs by March |
| (19 minutes later) | |
| Telecoms giant BT says it expects to have cut 10,000 jobs by the end of March next year. | Telecoms giant BT says it expects to have cut 10,000 jobs by the end of March next year. |
| The cuts will mainly affect agency and contract staff, including offshore workers, the company said. | The cuts will mainly affect agency and contract staff, including offshore workers, the company said. |
| BT said it had already cut 4,000 jobs, with a further 6,000 to go by March from its global workforce of 160,000. | BT said it had already cut 4,000 jobs, with a further 6,000 to go by March from its global workforce of 160,000. |
| News of the cost cuts sent BT shares up 12% in early trade. The company said the job losses were not a "direct result" of the economic downturn. | News of the cost cuts sent BT shares up 12% in early trade. The company said the job losses were not a "direct result" of the economic downturn. |
| "This is a reflection of the fact we have to become leaner," BT chief executive Ian Livingston told the BBC. | "This is a reflection of the fact we have to become leaner," BT chief executive Ian Livingston told the BBC. |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| "We need to do it in good times and bad." | "We need to do it in good times and bad." |
| Many of the job losses will be in the UK, with about 4,000 core positions affected. | Many of the job losses will be in the UK, with about 4,000 core positions affected. |
| Mr Livingston said that he did not expect to make compulsory redundancies. | Mr Livingston said that he did not expect to make compulsory redundancies. |
| Investors upbeat | Investors upbeat |
| Figures released on Wednesday showed that the UK unemployment total reached an 11-year high of 1.82 million in the three months to September, as more firms cut jobs to cope with the economic slowdown. | Figures released on Wednesday showed that the UK unemployment total reached an 11-year high of 1.82 million in the three months to September, as more firms cut jobs to cope with the economic slowdown. |
| However, BT's job losses, which will lead to lower costs, cheered investors. | However, BT's job losses, which will lead to lower costs, cheered investors. |
| BT shares were up 12%, or 13.5p, at 126p in morning trade on the London stock market. | |
| "The group's marked intention to improve profitability could see another turn in investor sentiment, this time upwards," said Keith Bowman, equity analyst at Hargreaves Lansdown stockbrokers. | |
| 'Decisive action' | 'Decisive action' |
| BT said that three of its four main business units were performing well, but said profits at its global services division "were simply not good enough". | BT said that three of its four main business units were performing well, but said profits at its global services division "were simply not good enough". |
| "We are taking decisive action to put matters right," Mr Livingston said. | "We are taking decisive action to put matters right," Mr Livingston said. |
| The firm said it had already replaced the head of the division. | The firm said it had already replaced the head of the division. |
| The job losses come as the firm announced a 11% fall in pre-tax profit for the July to September quarter. | The job losses come as the firm announced a 11% fall in pre-tax profit for the July to September quarter. |
| Pre-tax profits totalled £590m and the firm said revenue rose 4% to £5.3bn. | Pre-tax profits totalled £590m and the firm said revenue rose 4% to £5.3bn. |
| Last month, BT had warned that its global services division, which provides IT networks to multinational businesses, would report lower profits. Its shares fell nearly 20% on the news. | Last month, BT had warned that its global services division, which provides IT networks to multinational businesses, would report lower profits. Its shares fell nearly 20% on the news. |
| The company announced radical changes to its pension scheme this week, including an increase in the retirement age from 60 to 65 and breaking the link between final salaries and pension payments. | The company announced radical changes to its pension scheme this week, including an increase in the retirement age from 60 to 65 and breaking the link between final salaries and pension payments. |
| Do you work for BT? Are you worried about job security? Send your comments to the BBC using the form below: | Do you work for BT? Are you worried about job security? Send your comments to the BBC using the form below: |
| In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. | In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below. |