The Channel logo

News

By | Paul Kunert 1st April 2014 16:33

BT merges iNet and Engage IT divisions under one roof

Grabs Plusnet CEO, dangles redundo carrot to lure staff out

BT has slapped together the IT Engage and iNet businesses from today, April Fools' Day, but the move is no laughing matter for staff put at risk of redundancy.

The telco had merged the dabs, Business Direct and Engage IT operations back in 2011, plonking long-serving exec John Thornhill into the boss seat to oversee integration.

The Cisco Gold badged partner iNet was kept distinct from the borged threesome, even though it shared some of the same customers as the others.

But BT confirmed to The Channel that it had decided to bring all IT services businesses together under one roof.

"The development of BT Business and BT Consumer reporting as two separate business divisions and no longer as BT Retail has given us the opportunity to review our business model.

"In the IT services area of BT Business, Jamie Ford, former CEO of Plusnet, has been appointed MD. Under Jamie's leadership we have decided to bring together iNet and Engage IT as of 1 April," the spokeswoman told us.

Rich Lowe, who replaced Thornhill when he left in the summer of 2012 after less than a year as MD of Engage IT biz, becomes CEO of the iNet and Engage IT.

iNet and Engage IT employs around 1,200 staff and there will be obvious cost savings that parent BT can wring from the businesses in areas such as back office duplication.

"Staff have been informed and there is a consultation period underway," the spokeswoman told us.

Sources close to the situation reckon BT was looking for 40 staff to take voluntary redundancy under very attractive terms, and approximately 37 have "put their hands up".

BT refused to comment further including on the question of voluntary redundancies. ®

comment icon Read 5 comments on this article alert Send corrections

Opinion

Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella
Stranded_ships

Chris Mellor

Thousands of layoffs announced as spinning rust enters its death spiral

Features

STRASBOURG, JUNE 29, 2016: The seat of the European Parliament. by Marco Aprile for shutterstock. EDITORIAL USE ONLY
Plan b, image via Shutterstock
EU workers, new markets: post-Brexit pressure on May & Co
Tough question, pic via Shutterstock
Honest mistake with your licensing? Audit police look at it on a 'case by case basis'