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BT cuts 4,000 jobs worldwide and slashes CEO's bonus

Thursday, May 11th 2017 by Phil Wilkinson-Jones

BT is to cut 4,000 jobs worldwide following the accounting scandal in the Italian part of its Global Services operation.

The job losses, which will save the company £300m over two years, will be in back-office and managerial sectors.

BT chief executive Gavin Patterson and former finance director Tony Chanmugam will also lose their bonuses over the scandal.

Mr Patterson said it had been a “challenging year” for BT after it was also hit with £42m fine by Ofcom for cutting compensation payments to other broadband providers for late installations.

“We take these issues extremely seriously and are putting in place new measures, controls and people to prevent them happening again,” he said.

BT said its fibre broadband network now passes 26.5m premises, while EE’s 4G coverage reaches 80% of the UK’s landmass.

Investments in customer service mean that 100% of EE and 86% of BT customer service calls are now handled in the UK and Ireland.

Openreach has also cut the number of missed appointments in the past three months by more than half compared to last year.

“Our integration of EE is going well, our UK consumer, SME and corporate businesses are performing strongly, and we’ve made significant progress in improving customer experience across the group,” said Mr Patterson.

“Our agreement with Ofcom on Openreach governance brings to an end a period of uncertainty.

“And securing exclusive rights to top-flight European football until 2021 puts our consumer businesses in a strong position.”

BT added 211,000 broadband customers in the quarter, taking its retail base to 9.3m – 53% of which are on fibre packages.

It also added 11,000 new TV customers, taking its customer base to 1.7m, and BT Sport’s average annual audience figures increased 12% excluding Showcase and digital channels.

BT said the Champions League and Europa League finals, which were streamed on YouTube as well as shown on the BT Sport channels, were each watched by six million people.

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