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Thursday 24 May 2018

BT merging enterprise divisions amid ongoing overhaul

The telecoms giant said it was too early to comment on any potential job losses, but that cuts could not be ruled out.

Telecoms giant BT is merging its business and public sector divisions to create an enterprise unit with more than 14,000 staff.
Telecoms giant BT is merging its business and public sector divisions to create an enterprise unit with more than 14,000 staff.

By Holly Williams, Press Association Deputy City Editor

Telecoms giant BT is merging its business and public sector divisions to create an enterprise unit with more than 14,000 staff.

The group is bringing together the business and public sector division with the wholesale and ventures arm to create BT Enterprise.

BT said it was too early to comment on any potential job losses among the combined 14,100 workforce of the two units, but said cuts could not be ruled out.

A BT spokesman said: “We will look to eliminate duplication and introduce efficiencies over time.”

The business and public sector division employs 10,300 staff, while the wholesale and ventures arm has 3,800 workers.

The new unit will be headed by Gerry McQuade, currently chief executive of the wholesale and ventures business.

Business and public sector chief executive Graham Sutherland will leave BT after five years on its executive committee and 12 years with the company overall, BT said.

Gavin Patterson, chief executive of BT, said: “Having brought together our consumer and EE businesses, this is the next step in the simplification of BT’s operating model.

“Combining our enterprise businesses will allow us to strengthen the services and products we offer to businesses and sharpen our focus on customer service, through clear accountabilities and by introducing efficiencies.”

The newly combined division, BT Enterprise, will provide products and services to small and medium-sized businesses, the corporate and public sectors and other communications providers in the UK and Ireland.

BT said its global services unit will continue to provide services to multinational companies within the UK and worldwide.

Mr Patterson has been overhauling the group since its £12.5 billion takeover of EE in 2016.

The firm recently announced it is to close its defined benefit pension scheme for 10,000 managers as part of efforts to plug a mammoth deficit.

Earlier this year, it also posted falling third-quarter revenues and earnings as it lost 5,000 pay TV customers.

The group saw adjusted earnings drop 2% to £1.8 billion in its third quarter to December 31, while sales fell 3% to £5.97 billion.

Press Association

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