UK-based telecom major, British Telecom (BT) is set to slash about 10,000 jobs and further cut dividends by 60 percent. The move follows earlier announced 10,000 job cuts.

The announcement is expected to be made next month coinciding with the company’s results and along with the 1.5 billion pounds ($2.2 billion) of provisions.

"The huge redundancy programme will be announced next month alongside a horrendous set of year-end figures that will include provisions of about 1.5 billion pound," the Sunday Times said adding that "the redundancies are in addition to the 10,000 job cuts made last year and will be spread around BT’s 160,000 workforce."

BT though has officially declined to confirm the development and has termed it as speculation.