Communications solutions and services provider BT Group Plc (BT, BT-A.L) has come out with a drive to reduce expenses, after posting a fourth-quarter loss in May amid the recessionary environment. According to several media reports on Saturday, the company is to offer some of its employees time off in return for salary reductions.
The Daily Telegraph, citing an internal memo, said that U.K.'s largest phone company has proposed that employees take a year off in return for a 75% cut in their salaries.
Also, in order to ensure that the offer is taken up by many of its workers, BT would be paying the remaining 25% of their pay as an upfront cash payment, the reports added.
In addition, the telecommunications giant is also offering employees a one-time payment of GBP 1,000, provided they switch to part-time from full time work.
The other offerings include the opportunity to parents to work only in school term times, giving them ample time to spend the summer holidays with their children.
These measures reflect the company's aim to tackle the recession by cutting costs, but without laying off staff.
BT closed Friday's regular trading on NYSE at $17.01, down $0.23, or 1.33%, with a volume of 233,345 shares.
BT-A.L, on the same day, closed trading on LSE at 102.18 pence, down 0.97 pence, or 0.94%, on a volume of 8.35 million.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.