BT to cut 10,000 jobs, 2Q net profit rises

BT to cut 10,000 jobs, 2Q net profit rises

London: Shares at BT Group PLC, Britain’s largest phone company, surged 11% on Thursday morning after the company announced it is cutting 10,000 jobs this year to boost earnings and said net profit for the second quarter rose 18% on higher sales.

The majority of job cuts will hit workers employed through outside agencies, contractors and offshore workers, and represents a 6 percent reduction in BT’s global work force, the company said.

Net profit for the three months to 30 September was $595 million, up from 339 million pounds a year earlier. Revenue for the period rose to $7.9 billion from 5.1 billion pounds.

Chief executive Ian Livingston said the job cuts, which will be made by March of next year, were a necessary part of the company’s previously announced scheme to reduce costs by as much as $1.2 billion this year.