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Communications conglomerate BT intends to shut down its Londonderry office, potentially resulting in approximately 140 job cuts in the city.
Details of the Shutdown Plan
BT’s Consolidation Efforts
In a communication to Derry’s MP, Colum Eastwood, on Wednesday, BT disclosed that its plans to close the Derry office are part of a strategy to consolidate into fewer facilities.
The bulk of positions will be relocated to India, while some employees might consider transferring to Belfast, according to the company.
Under the firm’s strategy, all personnel are expected to vacate the Derry office by the year’s end.
Potential Impact
Of the 140 employees in Derry, around 90 individuals are part of BT’s business services team. The company intends to “transfer most of these roles to our operations in India,” the email stated, noting that the Derry office is “not viable for the long term.”
An additional 47 staff members in group business services might have the option to relocate their positions to Belfast.
Political Reactions
Eastwood’s Response
SDLP MP for Foyle, Colum Eastwood, described the possibility of job losses as “distressing for BT employees, their families, and the broader local economy in Derry.”
He noted that he was engaging with senior BT management and would address the issue with the Stormont and London governments.
“Offshoring these roles to India and Belfast is a misstep that exacerbates regional economic disparities and directly shifts opportunities from our city to places that do not require additional jobs,” added Eastwood.
“Just as we need to invest more in jobs and opportunities in our city, the proposed loss of these positions will have a severe impact.”
Historical Context
In 2023, Conor Murphy, Northern Ireland’s then Economy Minister, criticized the termination of 300 jobs at a BT call center in Enniskillen as “devastating”.
The potential loss of jobs in Derry follows reports from previous years regarding possible layoffs at BT’s Belfast headquarters due to corporate restructuring.
Planned Job Cuts Amid Consolidation Strategy
The outlook has been clear for nearly six years.
Company’s Downsizing Strategy
In 2019, BT announced plans to reduce its UK offices to a limited number of new or revamped buildings. The strategy for Northern Ireland involves refurbishing its Riverside Tower office block, a project finalized in 2023.
In the past year, the firm revealed it would close its Enniskillen call center, with most employees opting for voluntary redundancy.
In May of the previous year, BT’s newly appointed CEO, Allison Kirkby, unveiled £3bn in cost reductions and reaffirmed a previous target to cut up to 40% of the group’s workforce by the end of the decade.
Thus, commercial rationalization meant the Derry operation was highly likely to face a similar closure as Enniskillen.
Local Government Response
Derry and Strabane council is pursuing a meeting with BT to deliberate on the proposals.
Council Mayor Lilian Seenoi Barr and chief executive officer, John Kelpie, informed councillors on Wednesday that they had received communication from BT concerning potential job losses, which had been forwarded to elected members.
Criticism has been mounting along with the council’s response.
Elected Member Reactions
- People Before Profit councillor Shaun Harkin remarked that numerous workers and their families would be “left uncertain about their future.” He deemed the decision “dishonorable” and predicted it would “deplete well-paying jobs from the city.”
- DUP councillor Julie Middleton expressed that it was “deeply worrying and utterly devastating” for staff members and their families.
- Ulster Unionist councillor Derek Hussey observed “a certain irony” in BT, a national provider, proposing to relocate jobs from Derry to Delhi, India.
- He added that providing 47 workers the option to move to Belfast would “not be practical” for those located in the northwest.
Sinn Féin councillor Christopher Jackson stated that his party would back efforts to “reduce the devastation likely to occur” or collaborate as a council to “revert this decision.”