HUNDREDS of Scots staff face the axe after telecoms giant BT today revealed plans to shed 10,000 jobs.

Most of the losses will be agency workers and sub-contractors, but the firm admitted hundreds of jobs in Scotland were likely to be lost within the next four months. The news has sparked fears of cuts at the company's Glasgow HQ.

The company said it had already cut 4000 jobs, leaving a further 6000 to go as part of an on-going efficiency programme, which will mainly affect BT's indirect labour force including offshore staff. BT is cutting those jobs by 12%, whereas direct staff numbers will come down by 4%.

A spokesman said BT employed 8500 workers in Scotland, and that around 200 permanent jobs had already been cut as part of the purge on costs.

He added: "We expect to lose a few hundred more jobs by March but those will be achieved through natural wastage such as people retiring or moving elsewhere."

BT has six call centres in Scotland including a main one at its Glasgow HQ at Alexander Bain House on the Broomielaw.

The spokesman said it was too early to say how many Scottish contractors would be hit because "it will depend on which projects we decide to drop".

The job losses add to a week of gloom on the employment front, with thousands of redundancies announced in recent days and official unemployment edging closer to the two-million mark.

The jobs announcement came as BT unveil an 11% fall in second quarter pre-tax profits to £590million. Revenues were 4% higher at £5.3billion.

The company has unveiled planned pension fund changes including raising the retirement age, and higher worker contributions.