Jobs 'under threat' at BT Wireless

British Telecom's mobile phone division BT Wireless is reported to be planning hundreds of job cuts when it demerges from its parent group.

The group is said to be considering cutting up to 1,500 jobs through natural turnover and voluntary retirements once the demerger is completed, according to reports..

The reports says the bulk of the job cuts, which would represent around 10% of BT Wireless's total work force, would be in Ireland and the group's operations in the Netherlands.

A BT spokesman has dismissed the report as "speculation", adding that it was too early to say how many jobs would go.

The spokesman said: "I don't think any plans have been finalised regarding the way that employment is going to work in BT Wireless.

"There may be some voluntary redundancy and natural wastage but I don't think details have been worked out."

BT is expected to start spinning off its mobile phone division early next month, and has scheduled an analysts briefing for September 5.

It is thought the demerger could be completed by the end of the year.

The business will comprise of BT Cellnet and BT's wholly-owned mobile phone subsidiaries Viag, in Germany, Telfort in the Netherlands, Esat Digifone in Ireland and the Isle of Man-based Manx Telecom.

The move was announced as part of a series of measures designed by BT to cut its debt mountain, which is now thought to stand at £17.5bn, after reaching £28bn in March this year.

BT has also denied rumours that its chief executive Sir Peter Bonfield is set to step down within the next few months.