BT issues profit warning, eyes pension changes

BT last Friday issued what many observers saw as an unexpected profit warning related to its under-performing global services division, and the company's inability to keep pace with necessary cost cuts. The head of BT Global Services, François Barrault, is leaving the company as a result, and is being replaced by current BT finance executive Hanif Lalani. The global services business has been seen as having great potential for BT, though a number of international carriers, such as AT&T, Verizon Communications, France Telecom's Orange and Reliance Globalcom, among others, are chasing the same revenue.

Meanwhile, as an apparent consequence, BT may be forced to revamp its pension and retirement rules. The company reportedly is considering increasing its retirement age to 65 from 60, and requiring higher contributions to the retirement plan from employees, among other moves. The pension plan currently has about 65,000 members.

For more:
- The London TimesOnline has the story on the profit warning
- The TimesOnline also has the pension story

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