BT to cut 10,000 jobs

LONDON, Nov. 13 (UPI) -- British telecommunications giant BT said it would cut 10,000 jobs by year's end in the wake of a sharp drop in pre-tax profits.

For the first six months prior to Oct. 1, BT's pre-tax profits dropped 11 percent to $861.4 million, The Times of London reported Thursday.

"The group is effectively firing on three of its four cylinders, with the Global Services division currently disappointing," said Hargreaves Lansdown equity analyst Keith Bowman

The layoff announcement follows news that Virginia Media, Yell and GlaxoSmithKline were also cutting staff, bringing a three-day total for layoffs to 15,000, The Times said.

Unemployment in Britain reached a 11-year high in the third quarter, with 1.82 million in Britain now out of work.

BT Chief Executive Officer Ian Livingston said the action was "decisive." The former state-owned company currently employs 160,000 worldwide, The Times said.