BT Global Services is causing its parent company a few headaches.
The wider BT business saw revenue for the six months ending 30 September drop two per cent year on year to £11.6 billion, mostly due to regulated price reductions in Openreach and struggles in its enterprise businesses.
The outfit said that its Global Services arm was the “main contributor” to the overall revenue decline, with the division’s sales for the six-month period dropping to £2.3 billion.
Outgoing CEO Gavin Patterson said: “We continued to generate positive momentum in the second quarter, resulting in encouraging results for the half year.
“We are successfully delivering against the core pillars of our strategy with improved customer experience metrics, accelerating ultra-fast deployment and positive progress towards transforming our operating model.
“Our strategy is delivering, with benefits evident from the steps we’ve been taking to simplify and strengthen the business and improve efficiency.”
The company has been restructuring this year to cut costs in Global Services “significantly”.
So far that has involved getting rid of 2,000 people mostly from Global Services.
It added that the cuts are so far saving it £350m annually, but the costs of the cutting programme currently stand at £206m.
BT also flogged off its German VAR last month, which sat in the Global Services arm.
