May 11, 2017
BT sheds 4,000 jobs and lowers guidance
BT lowered its earnings guidance, reduced its outlook for dividend growth and moved to cut 4,000 jobs following a tough start to a year plagued by issues including an accounting scandal in its Italian operation. BT maintained its 10 per cent dividend rise for the year to March but said it would reduce the dividend growth rate to below the 10 per cent level in the current financial year. During the quarter, 29,000 of new broadband customers signed up, taking its base to 9.3m. BT added 160,000 TV customers over the course of the year and attributed the slow end to the year to price rises. After ceding bonuses and missing out on share awards, Mr Patterson's total pay for the year dropped from £5.3m to £1.3m. Tony Chanmugam, the former finance director who left last year, saw his remuneration fall from £2.8m to £258,000. Mr Patterson said that the cuts would save the company £50m a year once complete and that the company "Needed to adapt" to a changing market for network services.
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