BT sets sights on turnaround at struggling Global Services

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

He also said the group is in the process of cutting 10,000 jobs this year and plans to save £100 million a year in pension fund costs.

BT's headline earnings dropped 1% to £1.43 billion in the three months to September largely due to the 36% drop in earnings at Global Services, which provides multinational corporations and government agencies around the world with telecoms and IT services.

Livingston got rid of its chief executive François Barrault last month replacing him with the group's finance director Hanif Lalani. He said the division had chased growth across the world at the expense of watching the bottom line, so while revenues had soared profitability fell.

Livingston said: "In the latest quarter three out of our four businesses performed well and one performed badly. Profits in Global Services are simply not good enough and we are taking decisive action to put matters right."

Group revenues rose by 4% in the second quarter to £5.3 billion. The half-year dividend is unchanged at 5.4p paid out of earnings that were 3% down at 5.9p per share.

Livingston said he expects the group to show a modest rise in revenues for the full year but due to the failings at Global Services headline earnings were likely to "show a small decline".

He said the job cuts would be largely targeted at indirect workers who were either on contracts with BT, worked for agencies or were offshore.

BT has agreed a deal with its trade unions to alter the terms of its pension scheme to save it around £100 million a year. This will see the retirement age lifted to 65, larger contributions from employees and a switch from final salary to average career salary pensions.