The newly installed boss of BT's international corporate IT business has wasted no time in trying to get to grips with its massive cost base, transferring 500 jobs to Alcatel-Lucent, which is run by BT's former boss Ben Verwaayen.
The jobs being moved - out of a BT Global workforce of 37,000 worldwide - include just under 100 positions in the UK.
Shares in BT plunged to their lowest levels since its flotation in 1984 last week after a dire profit warning caused by cost over-runs at BT Global Services, which has consistently failed to meet margin expectations.
Its boss Francois Barrault resigned to be replaced by BT's finance director Hanif Lalani. His appointment is expected to lead to thousands of job losses as he tries to improve the profitability of BT Global Services.
His first move has been to announce a seven-year extension of the firm's existing partnership with Alcatel-Lucent, under which the Anglo-French technology firm will manage the networks that Global Services has acquired in 27 countries outside the UK over the past six years.
The deal - which will affect workers across Belgium, France, the Netherlands and Asia Pacific - leaves BT to focus on the roll-out of its so-called 21st century network, which is designed to cut costs and increase the range of services it can offer its clients.
"BT expects to derive significant cost savings and accelerated network optimisation over the lifetime of this contract," said Lalani.
Alcatel-Lucent has its own problems. Formed two years ago through the merger of France's Alcatel with US-based Lucent Technologies, it has struggled with internal wranglings, a tough market and fierce competition, especially from lower cost operators in the Asia Pacific region.
Its third quarter figures, announced late last month, were worse than analysts had expected.
Verwaayen, who left BT in June and was appointed to the chief executive's post at Alcatel-Lucent back in September, has promised to announce his plan to turnaround the company next month. He should know his way around at least part of the business - before BT he was vice-chairman of the management board of Lucent.
