BT announces plans to axe around 13,000 jobs over three years

BT is to axe 13,000 jobs over three years as part of cost cutting strategy.

The telephone communication company, which has about 80,000 employees in the UK, said the decision will mainly affect back office and middle management roles.

BT added that it would be hiring around 6,000 new employees “to support network deployment and customer service”.

The telecoms firm is also reducing its property footprint, which includes leaving the firm’s London headquarters to a site that has yet to be announced.

The job cuts and other measures would help BT to achieve a cost reduction of £1.5 billion.

In a statement the company said it is responding to changes in the telecoms market, adding “it is critical that BT transforms its operating model to build a lean and agile organisation that delivers.”

It comes as the firm reported revenues in the last quarter fell by three per cent to £5.97billion, just missing analysts expectations.

BT chief executive Gavin Patterson said: “I am pleased that we have reached agreement with the trustee on the pension valuation and recovery plan, which is affordable within our capital allocation framework, and draws a line under a key source of uncertainty for our stakeholders.”

The company also agreed to a 13-year plan to plug its £11.3billion pension fund deficit.

The redundancies represent the firm’s largest round of job cuts in almost a decade.

Hannah Maundrell, editor in chief of  said the job cuts were expected but they will still come as “incredibly worrying news for BT employees.

She added: “About 13,000 people will lose their jobs over the next three years – two thirds of these in the UK.

“Although BT are saying they will be hiring 6,000 other people, it will be in different areas so there is a big question mark over whether those losing their jobs will be able to take these on.

“This news is undoubtedly very distressing for employees of BT and their families. Those who fear they will lose their jobs should hope for the best but prepare for the worst.

“Now is the time to check what redundancy rights you have and dig out any income or mortgage protection policies you hold just in case.”

BT already cut 30,000 jobs in 2008 and 2009 due to problems with the company’s international business.

Mr Patterson spent billions last year buying up expensive football rights to try and lure customers to its paid TV service.

The telecoms company also forked out £12.5billion to acquire EE, who were then the UK’s largest mobile provider.

BT announced last year that they will be cutting 4,000 jobs worldwide following an accounting scandal that cost the company £500million.

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