BT axes 3,000 managers

NEWS BT is to cut 10 per cent of its management staff - around 3,000 people - after announcing disappointing third quarter results. The UK telco blamed a 24 per cent slump in profits on increased competition; the company also said it suffered badly from the 25 per cent drop in price for calls from fixed to mobile phones. BT saw pre-tax profits reach just £2.3bn for the first three months of the fiscal year, compared to £3.5bn 12 months ago. In a statement, BT chairman, Sir Iain Vallance, said: "We face increasing competition as the globalisation of our industry continues. In this quarter, competitive pressures have adversely affected operating margins in the UK fixed voice telephony market. "The results also reflect the costs of meeting increased customer demand and of growing new areas of business. We are responding to these rapidly changing market trends and cost profiles," he added.