There are job cuts, and then there are BT (NYSE: BT) jobs cuts. The telecoms giant says it will shed 10,000 jobs by this time next year – mainly offshored workers, agency staff and subcontractors – in a bid to reduce staff costs. The company said in its earnings update for the three months to September 30, its Q208, that staff costs rose two percent to £1.32 billion with operating costs at £4.66 billion, largely doe to acquisitions and foreign exchange rates. Combine that with Virgin Media and you have the announcements of 12,000 job cuts in a matter of days. The company stresses the majority of cuts will affect non-direct staff around the world but it is not ruling out cuts for full-time UK staff.
Despite the crunch, these big telecoms companies are still generating cash: BT made £5.3 billion revenue in the quarter, up four percent, although its pre-tax profits of £590 million down 11 percent on the same period last year. As CEO Ian Livingstone simply puts it in the release: