BT boss Gavin Patterson to leave group later this year

Departure is in response to recent bad press after series of negative announcements from the telecoms firm

Mr Patterson has worked at BT for 14 years (Reuters)

BT boss Gavin Patterson is stepping down, weeks after the group announced swingeing job cuts and poor financial results.

Senior management at BT confirmed that his departure was driven by the unfavourable response to the company’s recent announcements.

Last month BT revealed it intends to cut 13,000 jobs in the next three years in an attempt to reduce costs. The restructuring proposals were unveiled as the group grapples with a falling share price, with investors still reeling from an accounting scandal at BT’s Italian operation, which came to light last year.

BT chair Jan du Plessis said: “The board is fully supportive of the strategy recently set out by Gavin and his team. The broader reaction to our recent results announcement though has demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy.”

Mr du Plessis added: “To that end a number of concrete initiatives have already been launched and Gavin’s commitment to continue to lead the business during this transition phase will provide invaluable continuity.

“While BT is a very demanding business, with multiple stakeholders, we do have significant opportunities ahead of us. I am confident that, for the remainder of his term, Gavin and his senior management team will continue to display the energy required to deal with every dimension of the task at hand.”

Mr Patterson said: “It's been an honour to lead BT since 2013, and serve as a member of the board for the past 10 years. Throughout that time I've been immensely proud of what we’ve achieved.

“BT is a great business and with the new management team I've recently put in place, is I believe very well positioned to thrive in the future.”

The firm said it has begun the search for his successor and plans to appoint someone to join in the second half of the year. Until a new chief executive is in place, Mr Patterson will continue in his role.

George Salmon, equity analyst at Hargreaves Lansdown, noted that Mr Patterson’s tenure was “very much a game of two halves”, noting that BT Sport’s rise initially spelled good news for investors.

However, in the past few years, the stock has suffered badly, with flashpoints such as the Italian scandal and trouble with the regulator over its Openreach division dragging it downwards.

“Shareholder confidence has followed the share price down, and with BT embarking on a crucial restructure, the board has decided it’s time for a change,” said Mr Salmon.

“To be fair, it’s not all been Patterson’s fault. But leadership have to shoulder some responsibility for the poor performance.”

Shares in BT rose at the open on Friday.