BT Cuts 4,000 Jobs and CEO Bonus as Profit Falls -- Update
BT Group PLC said Thursday it will cut 4,000 jobs as part of a restructuring exercise and not pay its chief executive a bonus as it reported a fall in fourth-quarter pretax profit.
The U.K.-based telecommunications and TV provider said the job cuts come as it accelerates cost cuts in areas including global services, which provides communications services to businesses around the world.
The company reported a pretax profit of GBP440 million ($568 million) for the three months ended March 31, down from GBP845 million the previous year, on revenue up to GBP6.12 billion from GBP5.57 billion.
The final dividend rises 10% to 10.55 pence.
BT said chief executive Gavin Patterson and outgoing finance director Tony Chanmugam won't receive a bonus for the year ended March 31, a period marred by accounting irregularities in its Italian business, issues related to the U.K. infrastructure business Openreach and other challenges.
Mr. Patterson will receive GBP1.3 million for the period, down from GBP5.3 million the previous year, while Mr. Chanmugam's total payment falls to GBP258,000 from GBP2.8 million.
BT said it expects underlying revenue to be broadly flat for the current financial year.
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(END) Dow Jones Newswires
May 11, 2017 03:39 ET (07:39 GMT)