BT strikes back into profit after axing 20000 jobs

British Telecom bounces back into profit during 2009-2010 after having to lay off 20,000 employees in a vital cost cutting drive in order for the company to survive.

During the financial year of 2008-2009, BT reported to have had a net loss of £244 million in comparison to their post cuts figure of net profits of £1.007 billion. These cuts were in the majority made to agency staff and contractors.

BT had a highly troubled Global Services division, so this is where the changes needed to be made. The Global Services department provides telecommunications and IT products to large international companies and governments. This division expanded way faster than expected and so too did the costs.

The 20,000 job cuts were more than expected, with 15,000 jobs being cuts last year in a bid to cut costs and then the further, and hopefully final, 5,000 job cuts this annum.

The future for BT looks prosperous. With the telecoms company currently employing 128,000 people in Britain they say they have improved customer service and have more than doubled their cash flow, but are not stopping there. They plan to provide high-speed broadband internet to just fewer than 70% of British homes by 2015.

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