BT Global Services to axe 4,400 enterprise customers
The move will see the company re-focus its attention on the largest and most profitable clients from its existing customer base
BT Group is to scale down its international operations, reducing the size of its Global Services customer base by around 80 per cent, according to reports in the press.
BT Global Services' CEO, Bas Berger, told the Financial Times that he planned to radically cull the company's client base from 5,200 to just 800 – focussing only on the largest and most profitable clients.
Berger said that BT Global Services needed to become a "leaner, partnership driven" company.
In its most recent financial report, BT Group singled out its Global Services division as the "main contributor" to declines in revenues, which slumped by 2 per cent to £11.6 billion.
The decision to dramatically cut its client base is part of a bold new strategy to breathe new life into BT's Global Services division.
"In September, Global Services held a business briefing which set out a clear path to transform the business. This includes repositioning around its core markets and multi-national customers; building value in strategically selected areas of growth where Global Services can add real value and differentiate on service, including cloud and network infrastructure, cloud collaboration and cyber security; and, moving to lower costs, reduce risk and improve returns," BT Group said in a statement to the press.
BT said that, as a result of these changes, it expected its Global Services division to deliver double digit returns on capital employed over the next two years.
source totaltelecom
Industry: Telecommunications News
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