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