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BT cuts contractor rates by up to 30%

Published on Apr 13, 2009 | | Contract Rate Checker

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BT is slashing contract rates following disappointing results from its IT services division.

News of the rate cut comes after BT announced a wage freeze on its 100,000 permanent staff. The company has already let 6000 contractors go, as part of a UK-wide headcount cull.

Contractors who remain working for the company have been forced to accept significant cuts in pay over the past few weeks.

The rate cuts are taking place in BT's Global Services division, which provides IT and telecoms expertise to large companies.

This division appears to have been particularly badly affected by the recession as companies cut back on spending as bad economic news continues to flow.

BT blamed the poor performance of its Global Services division for a 81% drop in the company's third quarter profits, and announced that it had written down the value of its contracts by over £330 million.