LONDON (AP) — British telecom BT Group PLC has scrapped pay rises and most bonuses for 2008, the company said yesterday, after two profit warnings from the unit that provides network services to multinationals.

BT said there would be no bonuses paid at its Global Services division, though some "discretionary recognition payments" would be made to some staff below board level.

"There are no bonuses relating to financial targets this year, as all financial targets were missed," BT said in its annual report.

It said the unit's new chief executive, Hanif Lalani, would not receive a bonus at his request.

BT has been forced to write off more than £2 billion in over-optimistic assumptions on contracts and restructuring charges at the global services arm, whose clients include consumer goods company Unilever and the British National Health Service.

The outgoing unit head, Francois Barrault, received a total payment of £2.85 million, including a £1.6 million termination payment, but did not receive any bonuses.

BT cut 15,000 jobs last year and is expected to axe another 15,000 this year — about 10 percent of its work force.