BT, in its serious bid to cut costs, is all set to axe 10,000 more jobs and slash final dividend up to 60%.

It is going to announce write-downs of more than £1.5 billion and scaling back of dividend next month when its preliminary results will be made public. It is cutting costs and trying to turnaround Global Services Division.

The job cuts, in addition to 10,000 it already chopped during last year, will be carried out across 150,000-member global workforce. BT had freezed salaries of 85,000 UK staff and senior management, only last month.

The company’s share prices, which tumbled to 81p, reduced BT’s worth to £6.3 billion and preliminary results next month are likely to be worst in its history. City analysts believe BT could further axe additional 12,000 jobs.

A poor performance by its Global Services Division, provider of telecom and IT services to government bodies and multinational companies, has adversely affected BT’s results. Its full-year profits will also be down due to payments of pension deficit of £8 billion.

Global Services suffered operating loss of £501 million in third quarter, as against profit of £22 million last year. Overspending on 3 contracts out of total 17, has led to loss of £336 million. Two contracts with Reuter and NHS are expected to result in loss of “hundreds of millions of pounds” in the fourth quarter.

Ian Livingston, chief executive of BT, who took over the reins in June 2008, claimed that company has proposed major changes in management and was making significant changes in business operations and finance.

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