BT Group (LON:BT.A) is set to reveal plans to cut thousands more jobs, the Financial Times has reported. The move will come with the former telecoms monopoly looking to win back investors still spooked by last year’s accounting scandal in Italy.
BT’s share price has jumped in London in today’s session, having added 1.14 percent to 234.80p as of 12:37 BST. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.47 percent higher at 7,537.88 points.
BT to unveil job cuts
People with direct knowledge of the matter told the Financial Times this week that BT, which announced 4,000 job cuts a year ago, was set to reveal new redundancies when it presents its full-year results next week. The newspaper notes that analysts at Exane BNP Paribas have estimated that the former telecoms monopoly could cut a further 6,600 of its 106,000-strong workforce to save £500 million over the next three years.
The job cuts will come after last month, the former telecoms monopoly said that it was merging its Business and Public Sector and Wholesale and Ventures units as it looks to simplify its business which has been plagued by an accounting scandal in Italy and regulatory pressure at home.
The FT notes that investors believe that the cost-cutting plan, alongside a new growth strategy based on a push for “convergence” — closer integration of mobile and fixed telecoms services — will be key to restoring faith in BT’s balance sheet.
The news comes after Barclays trimmed its rating on the blue-chip telco yesterday, arguing that the company could face increased competition for providing broadband infrastructure from wholesale-only providers.
BT is due to post its fourth-quarter results on Thursday.