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| BT to shed a further 15,000 jobs | BT to shed a further 15,000 jobs |
| (about 3 hours later) | |
| BT has said it will cut about 15,000 jobs this year, mostly in the UK, and has reported an annual loss of £134m. | BT has said it will cut about 15,000 jobs this year, mostly in the UK, and has reported an annual loss of £134m. |
| The firm also said it had cut 15,000 jobs in the past year, which was 5,000 more than had been expected. | The firm also said it had cut 15,000 jobs in the past year, which was 5,000 more than had been expected. |
| BT's woes centre on its global services unit, which handles the network systems of large firms. BT said it had taken a near £1.6bn charge at this unit. | BT's woes centre on its global services unit, which handles the network systems of large firms. BT said it had taken a near £1.6bn charge at this unit. |
| BT said it would make £525m of pension contributions in each of the next three years to help cut the scheme's deficit. | BT said it would make £525m of pension contributions in each of the next three years to help cut the scheme's deficit. |
| BT's self-inflicted wounds aren't life threatening Robert Peston, BBC business editor Read Robert Peston's blog | BT's self-inflicted wounds aren't life threatening Robert Peston, BBC business editor Read Robert Peston's blog |
| It also cut its dividend sharply from 15.8 pence to 6.5p. | It also cut its dividend sharply from 15.8 pence to 6.5p. |
| "Three out of four of BT's lines of business have performed well in spite of fierce competition and the global economic downturn," said BT chief executive Ian Livingston. | "Three out of four of BT's lines of business have performed well in spite of fierce competition and the global economic downturn," said BT chief executive Ian Livingston. |
| "However this achievement has been overshadowed by the unacceptable performance of BT Global Services and the resulting charges we have taken." | "However this achievement has been overshadowed by the unacceptable performance of BT Global Services and the resulting charges we have taken." |
| BBC business editor Robert Peston said the main problem at BT's global services division - whose customers include Microsoft, Reuters and the NHS - "is that costs have spiralled out of control". | BBC business editor Robert Peston said the main problem at BT's global services division - whose customers include Microsoft, Reuters and the NHS - "is that costs have spiralled out of control". |
| Telecoms analyst Eddie Murphy of Priory Consulting said the unit was also being hit by multinationals seeking cheaper IT providers at a time of global recession. | Telecoms analyst Eddie Murphy of Priory Consulting said the unit was also being hit by multinationals seeking cheaper IT providers at a time of global recession. |
| Union talks | Union talks |
| The latest 15,000 job cuts represent about 10% of the firm's current workforce. The previous cuts have reduced BT's total number of employees to about 147,000. | The latest 15,000 job cuts represent about 10% of the firm's current workforce. The previous cuts have reduced BT's total number of employees to about 147,000. |
| This has been a challenging year in which BT has had to tackle some significant issues BT chairman Sir Mike Rake | This has been a challenging year in which BT has had to tackle some significant issues BT chairman Sir Mike Rake |
| BT said it hoped to remove the positions through natural wastage and voluntary redundancies, and added that it did not have plans for compulsory lay-offs. | BT said it hoped to remove the positions through natural wastage and voluntary redundancies, and added that it did not have plans for compulsory lay-offs. |
| "Our aim is to work closely with the unions to reduce BT's total labour cost, of both direct and indirect staff, as this is critical to the success of the company going forward," said a BT spokesman. | "Our aim is to work closely with the unions to reduce BT's total labour cost, of both direct and indirect staff, as this is critical to the success of the company going forward," said a BT spokesman. |
| Andy Kerr, deputy general secretary at the Communication Workers' Union, told the BBC he hoped there would not be any compulsory redundancies. | Andy Kerr, deputy general secretary at the Communication Workers' Union, told the BBC he hoped there would not be any compulsory redundancies. |
| "We have worked closely with the company over the last year to make sure there were no compulsory redundancies in the company," Mr Kerr told the BBC. | "We have worked closely with the company over the last year to make sure there were no compulsory redundancies in the company," Mr Kerr told the BBC. |
| "We did it last year and the commitments have worked so far, as there's certainly no plans for compulsory redundancies for this year coming." | "We did it last year and the commitments have worked so far, as there's certainly no plans for compulsory redundancies for this year coming." |
| Pension worry | Pension worry |
| Robert Peston said the job cuts would be very bad news for BT's UK workforce. | Robert Peston said the job cuts would be very bad news for BT's UK workforce. |
| BT GLOBAL SERVICES Provides network solutions to multinational firms and large public sector bodiesRecent high profile contracts include overhaul of the NHS's computer systems in LondonCurrently employs 37,000 people across 53 countriesBT has been forced to write down almost £1.6bn from the value of its contractsMade an annual loss of £2bn for the year to 31 March 2009 | BT GLOBAL SERVICES Provides network solutions to multinational firms and large public sector bodiesRecent high profile contracts include overhaul of the NHS's computer systems in LondonCurrently employs 37,000 people across 53 countriesBT has been forced to write down almost £1.6bn from the value of its contractsMade an annual loss of £2bn for the year to 31 March 2009 |
| "Ian Livingston said the firm wants to minimise the number of BT permanent staff who would be going, but jobs are jobs," he said. | "Ian Livingston said the firm wants to minimise the number of BT permanent staff who would be going, but jobs are jobs," he said. |
| Looking head, our correspondent said BT's pension deficit was a major concern, despite BT's plans to pay in £525m in each of the next three years. | Looking head, our correspondent said BT's pension deficit was a major concern, despite BT's plans to pay in £525m in each of the next three years. |
| BT revealed that under international accounting standards, its final salary pension scheme moved sharply from surplus to deficit in the past year. | BT revealed that under international accounting standards, its final salary pension scheme moved sharply from surplus to deficit in the past year. |
| A year ago, at the end of March 2008, the surplus stood at £2.9bn, but a year on this had changed to a deficit of £3.8bn. | A year ago, at the end of March 2008, the surplus stood at £2.9bn, but a year on this had changed to a deficit of £3.8bn. |
| BT said this was due to an £8bn reduction in the value of the scheme's assets. | BT said this was due to an £8bn reduction in the value of the scheme's assets. |
| The company also revealed that the pensions regulator has taken the unusual step of intervening in the scheme's three-yearly valuation currently being undertaken by the pension fund's actuary. | The company also revealed that the pensions regulator has taken the unusual step of intervening in the scheme's three-yearly valuation currently being undertaken by the pension fund's actuary. |
| BT said the regulator wanted to discuss "the underlying assumptions and basis of the valuation". | BT said the regulator wanted to discuss "the underlying assumptions and basis of the valuation". |
| A spokesman for the pensions regulator said they were taking an interest in the BT scheme because of "its enormous size, it is the largest in the private sector". | A spokesman for the pensions regulator said they were taking an interest in the BT scheme because of "its enormous size, it is the largest in the private sector". |
| He added: "We have a responsibility to ensure appropriate scheme funding arrangements are put in place for all pension funds we regulate." | He added: "We have a responsibility to ensure appropriate scheme funding arrangements are put in place for all pension funds we regulate." |
| To help plug the pension gap, BT reduced its final dividend to 1.1 pence to give a full-year dividend of 6.5 pence, which was 59% lower than last year. | To help plug the pension gap, BT reduced its final dividend to 1.1 pence to give a full-year dividend of 6.5 pence, which was 59% lower than last year. |
| Revenue growth | Revenue growth |
| BT's overall group-wide revenues for the year to 31 March 2009 rose 3% to £21.4bn. | BT's overall group-wide revenues for the year to 31 March 2009 rose 3% to £21.4bn. |
| Annual revenues at its BT Retail unit, which provides phone lines and broadband to homes and smaller firms, fell very slightly to £8.47bn from £8.48bn a year earlier. | Annual revenues at its BT Retail unit, which provides phone lines and broadband to homes and smaller firms, fell very slightly to £8.47bn from £8.48bn a year earlier. |
| Revenues at its BT Wholesale unit, which runs its networks, declined 6% to £4.7bn. | Revenues at its BT Wholesale unit, which runs its networks, declined 6% to £4.7bn. |
| "This has been a challenging year in which BT has had to tackle some significant issues," said BT chairman Sir Mike Rake. | "This has been a challenging year in which BT has had to tackle some significant issues," said BT chairman Sir Mike Rake. |
| Shares in the firm were down 3.7 pence or 3.9% to 90.70p in afternoon trading. | |
| Are you a BT shareholder? Or do you work at BT? How have you been affected by the company's annual loss? Share your experiences using the form below. | Are you a BT shareholder? Or do you work at BT? How have you been affected by the company's annual loss? Share your experiences using the form below. |
| A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. | A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |