BT to cut back Graduate Trainee Intake

BT has become one of the first blue-chip companies to scrap its graduate recruitment scheme, increasing fears of shrinking job opportunities for Britain’s youth.

In a memo sent to staff last week and seen by The Sunday Times, BT said: “In light of the economic environment and headcount pressures, BT has taken the decision to cease graduate recruitment activity . . . there is no timeline for re-entry.”

The closure will add fuel to concerns over Britain’s “lost generation” of young people struggling to find work. Statistics last week showed that a record 835,000 people aged between 18 and 24 in England were not in work, education or training — a year ago the figure was 730,000.

The increased popularity of flagship recruitment schemes leaves more graduates fighting over fewer places. BT received 4,800 applications last year for 130 jobs, up from 3,800 just two years ago.
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The company has recruited several of its top executives through the graduate scheme. Hanif Lalani, the head of BT’s Global Services arm, joined as a trainee in 1983 after attending Essex University. His successor as group finance director, Tony Chanmugam, was taken on in 1978 via a similar route.

However, the move shows that BT chief executive Ian Livingston is tackling the company’s cost base. He has already pledged to cut 30,000 jobs in two years and wants hundreds of workers to take a sabbatical in exchange for a 25% pay cut.

BT has said it is committed to this year’s graduate intake and will support those already in the scheme.