BT chief executive and former finance chief will not receive yearly bonuses in 2017 after BT Italia accounting scandal
BT will be cutting 4,000 jobs I order to save £300 million needed to restructure global services, group functions and technology, services and operations programmes.
The job cuts will be dolled out to back-office and managerial sectors as BT simplifies its global services operations.
The changes to global services follows the accounting scandal at BT Italia which cost the telecoms giant over £500 million.
BT chief executive and former finance chief Gavin Patterson and Tony Chanmugam have agreed to forefit their bonuses over the scandal however both men would not have accepted a bonus is BT had approved one.
According to the 2016 BT annual report Gavin Patterson received a salary of £969,000 for the year with a bonus worth £4 million.
BT head of continental Europe Corrado Sciolla stepped down following the scandal with Bas Burger replacing Luiz Alvarez as head of global services division.
BT chief executive Gavin Patterson said that the last 12 months have been challenging for BT adding: “We’ve undertaken a strategic review of Global Services.
“Technology trends mean that we are now less dependent on owning physical local network assets around the world, creating the opportuynity to reposition Global Services as a more focused digital business.
“We’re also accelerating and expanding our cost transformation programmes, most significantly in our central Grop Functions, in Technology, Service and Operations, as well as in several other lines of business.
“This will help offset market and regulatory pressures and create the capacity for future investment.”