BT and Sony profits hit by a truck, fall from a cliff, die horribly

14 May 2009

It's not a great day for business today, as companies announce their profits from the past twelve months. Except this year, those profits are as scarce as grumble at a monastery. Step forward former bastion of telephony BT, which has reported an annual loss of £134m, and announced it'll cut up to 15,000 jobs over the next 12 months. That's on top of the 15,000 jobs lost in the past year, which was already 5,000 more than expected.

The biggest losses were suffered by its global services unit, which operates large-scale IT services for the likes of the Government, and is expected to contribute losses of £1.5 billion. All this after BT posted profits of £2 billion last year. Clumsy.

Meanwhile Sony celebrated the launch of their new Walkman X series yesterday, but then reported its first annual loss in 14 years, of £685 million. It's almost as if the good news were announced to eclipse the bad news, or something. Anyway, compared to the jillions Sony rakes in from dozens of divisions every year, two thirds of a billion pounds is relatively small potatos. The worry is a drop in worldwide sales of 13 per cent, and whether those sales will return; will you be buying the new Walkman?

TOPICS:   Economy

5 comments

  • James
    BT....a loss? despite charging all 6 homeowner in my new block of flats each £122 each (yes i said each again for emphasism) to connect the phone lines! when it could clearly have been done in one call out and a shared cost between us. but NOOOO! anyway my point is im surprised at there loss! people still need phone lines in a recession, why should they lose money at this scale?
  • Mike H.
    Dunno James, mobiles, skype, cheaper ISP's, Cable, Sky, not sure though.
  • Jill
    It's probably because of their ridiculous charges - thats why I moved away from them. They still call me every 3 months or so trying to give me their new special offer, which inevitably is still a lot more expensive than I am paying now.
  • Mr.
    I think landlines are phasing out. We only use ours for calling 0800 numbers.
  • MattS
    I've not made a call from my landline for about 2 years, and I mean not once. With a corprate mobile for local calls and programs like skype and ventrilo for long distance conversations, I have no need for a landline phone anymore.

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