BT slashes 10,000 jobs
Telecoms giant British Telecom (BT) is to cut its global workforce by 6% - that's 10,000 workers.
Many of these jobs will be UK jobs although workers around the world will also be made unemployed.
The downturn in profits that BT have declared led to falls in share prices but the announcement of these job cuts that will cause heartache and hardship for many workers seems to have made financial workers and investors happy as they invested heavily on the back of the job loss announcements causing a resultant rise of 12% in BT shares this morning.
BT is axing 10,000 workers, or 6% of its global workforce, with several thousand expected to go in the UK as the company looks to cut costs and reduce its reliance on contractors in the face of the global economic downturn.
The company, which announced an 11% fall in second quarter profits, said it has already cut 4,000 mostly contractors jobs and a further 6,000 will go by next April. The majority of those job losses will be among BT's own staff and the axe is expected to fall particularly heavily in the UK.
BT has 160,000 people working for it worldwide, of whom 110,000 are directly employed.
This latest blow to the British economy came just a day after the number of jobless people in the UK hit its highest level since 1997. By the end of September there were 1.825 million people out of work. The claimaint count also rose to 980,900, its highest level since the end of 1997.
News of the job cuts helped to sent the company's shares up 12% in early trading, 13.5p higher at 126p.