BT profit down 40 pc, to slash 15,000 jobs

The writedown is to be taken at its Global Services unit, which supplies the IT needs of multinational companies and which the company had for years striven to make its growth engine. The group also said it would almost double its pension contributions to 525 million pounds a year.

BT said adjusted earnings before interest, tax, depreciation and amortisation for the fourth quarter were 1.35 billion pounds, down 14 per cent. Profit before tax on an adjusted basis was down 40 per cent and on a reported basis showed a 1.28 billion pound loss. BT raked in revenues to the tune of 5.47 billion pounds, a marginal rise as against 5.42 billion pounds in the corresponding period a year ago.

BT slipped into a loss of 81 million pounds for the year ended March 31, 2009, whereas the firm had a profit of 1.74 billion pounds in the year-ago period.

BT said it would take a total charge of 1.3 billion pounds as a result of the completion of contract and financial reviews. It took a specific charge of 280 million pounds relating to the restructuring of the unit and said it would take further charges of around 420 million pounds in total over the next two years. 

BT said its total labour workforce, of both permanent and contract staff, fell by 15,000 to 147,000 in March, 2009 and said they expected a similar number next year.