Telecoms Industry Giants Cut Thousands of Jobs

Last week BT announced that they were to cut 10,000 jobs worldwide, with 7,000 to be cut in the UK. This news shortly after BT announced a shock £80 million drop in profits, and UK unemployment levels were reported to be as high as 1.83 million. BT is the 4th large telecoms company to announce job losses in the past week; Virgin Media plans to cut 2,200 jobs over the next three years, yellow pages group Yell is cutting 1,300 posts this year, and Vodafone wants to reduce costs by £1bn a year with an unspecified number of job losses.

BT’s Chief Executive, Ian Livingston, explained that BT’s cuts were part on an ongoing efficiency programme: 'This reflects the fact that our prices have been falling every year for several years now,' he said. 'Since that is the case we have to deliver costs savings every year. But we also anticipated reasonably early on that economic conditions were worsening.”

With these large companies cutting jobs, what effect will this have on small and medium-sized companies? At Plum we feel that we can adapt to the current market forces and are bullish about the future. We have recently hired business graduate Rhodri Lloyd to help us improve our customers’ experience.