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Company hit by Italy scandal

BT axes 4,000 jobs and cuts CEO bonus

Gavin Patterson
Gavin Patterson: bonus axed

BT has confirmed that 4,000 jobs will be axed over the next two years as it restructures its worldwide operations.

The cuts follow an accounting scandal in its Italian division that cost BT more than £500m.

Chief executive Gavin Patterson and the now-departed finance director will lose their annual bonuses over the debacle in January when BT was forced to write down the value of its Italian unit after years of overstating profits.

The company has already been announced that Corrado Sciolla, head of continental Europe, is stepping down over the affair.

It confirmed the changes as it disclosed that its annual pre-tax profits fell 19% to £2.35 billion in the year to March.

The company described it as a “challenging year” said it “remains well positioned for the future” and that it “our strong businesses, underlying operational performance and financial returns show BT has the strength and breadth to withstand setbacks.”

BT will continue to increase its dividends to shareholders.

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