Struggling BT axes 13,000 workers to reduce costs

BT is to axe 13,000 jobs in its biggest overhaul for a decade.

The cull, which will see one in eight staff go, is to cut costs by £1.5billion over the next three years, as it fights to revive its flagging fortunes.

Two-thirds of the jobs to go from its 104,000-strong workforce are UK-based and they are mainly administrative and management roles.

However BT said it was also hiring 6,000 engineers and frontline customer service staff as it embarks on a major upgrade of its broadband and mobile network.

Gavin Patterson, 50, BT’s chief executive, said the business had become too complicated, with too many layers of management and needs investment.

BT will also move from its HQ next to St Paul’s Cathedral in London, into smaller offices.

Over the past three years its shares have more than halved in price and yesterday they sunk even lower – wiping £2billion off their value.

‘Decisions like this are not easy, we recognise it is going to affect a lot of people,’ Mr Patterson said. ‘We need to make ourselves more efficient.’