TELECOMS group BT is poised to axe another 10,000 jobs.
The job cuts are likely to form part of a redundancy programme due to be announced next month, it was reported overnight.
The efficiency drive – in addition to 10,000 job cuts made last year – will be disclosed at the same time as year-end results.
Reports suggested the annual results will mark one of the lowest points in BT’s history since it was privatised in 1984.
It will also dent the legacy of Ben Verwaayen, BT’s former chief executive who left eight months ago to become the chief executive at Alcatel-Lucent.
BT has just completed a cost-cutting programme which removed 10,000 positions from the business by the end of March.
Many of the cuts affected BT’s indirect labour force such as agency workers, contractors and offshore staff.
They also announced only days ago that they were slashing by up to 30% the rates they pay to contractors working on BT projects.
Some 6,000 contractors have also had their contracts terminated by the company over the past few months.
And BT has already confirmed a 12-month pay freeze on all its staff, including the directors.
A spokesman for the company, which has a total workforce of around 160,000 people in 170 countries, declined to comment on the latest jobs speculation. BT said in January it planned to announce a review of its cost base within global services at its results on May 14.
The latest report said BT will also disclose £1.5bn of write-downs on the value of contracts within the global services arm.
BT has already announced £340m of provisions because of a more cautious view of cost efficiencies and contract performance at the division.
This is thought to have related to 15 of its 17 biggest contracts.
However, the remaining two are believed to be significant, with the biggest being the NHS programme to upgrade its IT systems.
BT’s chairman Sir Mike Rake and new chief executive Ian Livingston are expected to use the results as a chance to clear up the company’s balance sheet and draw a line under further provisions at global services.
Its remaining three divisions, including retail, are said to be enjoying their strongest performances for five years.
However, the figures are expected to be further dented by a big contribution to address a pension deficit that will exceed £8bn.