Graduate recruitment prospects took another knock this week as telecommunications giant BT axed its graduate programme.

The firm, which last year took on 130 graduates, suspended the scheme because of pressure on staff numbers during the recession.

A spokesman from BT said: "BT can confirm that it has decided to cease its graduate recruitment programme for the time being, as a result of the current economic environment and pressure on staff numbers. BT will be reviewing the status of its graduate programme on an ongoing basis. BT remains committed to developing our current graduates and 2009 entrants throughout the duration of their graduate programme and onwards in their careers."

The company has said this year's intake of graduates, due to commence work in a fortnight, will start work as normal. Last year 4,800 students applied for the 130 places, up from 3,800 applicants in 2007.