>>THE BT Group HR Downsizing<<

THE BT GROUP

Downsizing

- is the act of reducing the number of employees within a company in order to decrease costs and increase efficiency, with the ultimate goal of greater profitability. Downsized companies either continue the same work functions with fewer employees or they decrease the scope of company wide activities. Downsizing in organizations is a popular management strategy. However, in the field of organization change, the question of whether downsizing practices eventually improve performance is frequently asked and is never satisfactorily answered. The consequences have not always materialized over these years. On the negative side, downsizing harms employees, their families, and at the same time causes social chaos. The possible answers could be the ignorance of some important mechanisms between them.

Last December 5, 2001 the BT Group as British Telecommunications has been renamed, eliminate 4,000 more jobs to cut costs. As the company faces increased competition and heightened regulatory scrutiny decided to layoff employees. All the new jobcuts are from the BT Retail division, which supplies telephone service to 21m customers in Britain. They bring the total number eliminated in the unit to 13,000 jobs, or 19% of its workforce, as part of a plan begun in March 2000 to trim $1.2B in costs over three years.

But the BT Group is not yet done with its downsizing because on March 28,2002.

The BT Group eliminated about 1,200 jobs at its BT Retail division by March 2004, as it closes 53 call centers. The job cuts are in addition to 13,000 staff reductions over three years announced in December. These job cuts that made by the BT Group have been planned and this layoffs done on March 28 are part of 5,000-6,000 reductions that BT have planned to made in 2002. The job cuts are through attrition or by relocating employees to other BT divisions.

BT has transformed itself in the last year from a company with global ambitions to one that is more focused on offering basic phone and Internet services in its home market...

Sources:

http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=A7C3A10E4D82BF5D917A2C6F64374EA7?contentType=Article&contentId=1728216
http://www.timesizing.com/dwn0203.html