BT to restructure Global Services after 'challenging year'

Thu May 11, 2017 12:26pm EDT
 
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LONDON (Reuters) - BT (BT.L: Quote), Britain's biggest telecoms group, said it would shake up its global service division that serves multinationals and scale back its dividend growth ambitions as it recovers from an accounting scandal in Italy and a profit warning.

Reporting fourth-quarter revenue of 6.12 billion pounds, up 10 percent, and adjusted earnings of 2.07 billion pounds, up 2 percent and broadly in line with forecasts, the company said it had had a "challenging year".

It said it would cut 4,000 jobs from its Global Services unit, group functions and technology operations, taking a restructuring charge of 300 million pounds.

It paid a final dividend of 10.55 pence, up 10 percent, but said dividend growth in 2017/18 would be lower than the 10 percent it had previously targeted.

(Corrects third paragraph to show job cuts will be in group functions as well as Global Services.)

(Reporting by Paul Sandle; editing by Kate Holton)

 
The company logo for BT is seen on the BT Tower in London, Britain, January 24, 2017. REUTERS/Toby Melville -