5,000 job cuts predicted as BT eyes a return to profit

The group is already thought to have cut 35,000 jobs since the beginning of 2008, exceeding its target by 5,000, according to weekend reports.

But in spite of that BT finance director Tony Chanmugam is understood to be aiming to cut at least a further 5,000 posts.

It is thought the majority of the reduction was to jobs in Britain, although the cuts applied mostly to agency staff and temporary workers, rather than full-time BT employees.

BT is expected to return to profit this year, following last year's 134m loss, with analysts pencilling in pre-tax profits of 1.06bn for the year to March 31. The group sunk into the red after it took a mammoth 1.9bn writedown and suffered losses at its Global Services arm.

If the group does go ahead with a further 5,000 jobs, it will have reduced its workforce from 162,000 at the beginning of 2008, to 122,000. Savings are expected to total 2bn in the year to April.