BT Cuts 4,000 Jobs and CEO Bonus as Profit Falls -- Update
11 May 2017 - 5:54PM
Dow Jones News
By Rory Gallivan
LONDON-- BT Group PLC said Thursday it will cut 4,000 jobs as
part of a restructuring exercise and not pay its chief executive a
bonus as it reported a fall in fourth-quarter pretax profit.
The U.K.-based telecommunications and TV provider said the job
cuts come as it accelerates cost cuts in areas including global
services, which provides communications services to businesses
around the world.
The company reported a pretax profit of GBP440 million ($568
million) for the three months ended March 31, down from GBP845
million the previous year, on revenue up to GBP6.12 billion from
GBP5.57 billion.
The final dividend rises 10% to 10.55 pence.
BT said chief executive Gavin Patterson and outgoing finance
director Tony Chanmugam won't receive a bonus for the year ended
March 31, a period marred by accounting irregularities in its
Italian business, issues related to the U.K. infrastructure
business Openreach and other challenges.
Mr. Patterson will receive GBP1.3 million for the period, down
from GBP5.3 million the previous year, while Mr. Chanmugam's total
payment falls to GBP258,000 from GBP2.8 million.
BT said it expects underlying revenue to be broadly flat for the
current financial year.
Write to Rory Gallivan at rory.gallivan@wsj.com
(END) Dow Jones Newswires
May 11, 2017 03:39 ET (07:39 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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