Latest figures show that British unemployment has hit an 11-year high of 1.82 million during the three months to Sep and is forecast to peak at 3.3 million by 2011. BT said that most of the job losses would be among contract, agency and offshore workers. Sub-contractors and other indirect employees would also lose their jobs, the group said. Ian Livingston, chief executive of BT, described the action BT was taking as 'decisive'. BT said the move was aimed at reducing its dependence on consultants and contractors.
About 4,000 of the job losses will be direct BT staff, the remaining 6,000 will be from related employees. BT admitted that its performance was "disappointing" and the results in its struggling Global Services division were 'simply not good enough', where earnings before interest, tax, depreciation and amortisation fell by 36 per cent to 119 million.