Tuesday, February 8, 2011

Ian Livingston gets BT back on track

BT has had a hard time in the during the past years due to its falling share prices and increasing competition. It was in a state of turmoil for the past two years leading to around 30,000 layoffs and several cut downs. While the world was not over the fall of the Lehman Brothers, Ian started to smell the rat at the BT global services. All did not seem well and the records showed a declining graph in the financial sector in the most profit generating area. The panic struck at the BT household, and Ian had to maintain the composure at the telecom giant to prevent it from a fall. But things continued to be on a downfall, until it recorded a loss of £1.9 and marked towards its first loss since its privatisation year in 1984.

During the years, of Ben Verwaayen, the predecessor of Ian Livingstone, BT seemed to enjoy its glory with by bagging several contracts in the area of consumer goods with the hold of consumer product giant Unilever. However, it could not quench its thirst and divulged in the area without any sense of loss or profit. The expenses were on an all time rise and to add to this the Global services boss, Francois Barrault flew around 3,000 employees in Las Vegas for a sales conference where he introduced them with the Neil Armstrong concept to lead BT to the moon. All these steps of generosity by BT towards its customers however failed to deliver the results in terms of profits that the BT has expected to achieve. All this overheads were spawned by Livingstone to get BT back to its holding, which he started by axing around 30,000 of its employees, resulting in one of the major job layoffs during the period. Barrault, who walked away with around £2.8 million was also amongst the ones to be discharged.

BT laid its agenda to contribute at least £100million cashflow from Global services, and Ian managed to achieve this target well 12 months before schedule. With their restructuring plans, BT has also managed to reform the crippling pension plans. BT has also managed to regain its momentum by boosting its connection through broadband and has managed to achieve a rise of around 545,000 new additions by the October and December forming the highest proportion from the past eight years. Its next plan of launching the YouView, the concept of bringing pay-TV to the masses. But to regain its position as the superior, it still needs to struggle its way long.

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