April 29, 2014
SingTel-Optus is set to cut more than 200 jobs from its Australian workforce as early as this week – the latest in a series of losses from the company.
The latest cuts from Optus bring the total number of announced redundancies and job outsourcings at the company to over 1700 workers since 2012 when its previous chief executive Kevin Russell took over the business with a mandate of cutting costs.
Its workforce has dropped from 9726 staff at the end of 2011 to an average of 8686 for the nine months ending December 2013.
Sources told Fairfax Media the cuts would come from across the company and a range of different divisions. It is also understood that 300-400 jobs could be cut depending on the completion of a review within the company.
An Optus spokeswoman said the company would be speaking with staff about the changes over the coming weeks.
Optus continually reviews its operations to ensure it has the right organisational structure in place to achieve its business goals, and we’ve been continuing to do so within the context of the business strategy we launched 18 months ago,” she said.
“Our priority is always to communicate the detail of any change directly with our employees and support those who might be affected.”
The job losses come despite growing profits at the company. Optus’ December quarter results showed a 5.5 per cent increase in year-on-year profits to $763.8 million.
It also comes despite SingTel group chief executive Chua Sock Koong’s February declaration that Optus would focus on winning new customers to combat falling revenue and subscriber numbers as well as the departure of Mr Russell.
Optus recently increased the amount it charged customers for Apple iPhones and Samsung Galaxy S5 devices as part of an ongoing effort to raise profits.
Rival telco M2 Group, which owns internet service providers Dodo and iPrimus, on Monday announced a move to make 150 roles redundant. Its chief executive Geoff Horth said the NBN was a driving force behind the rising industry trend of job cuts.
Telstra and iiNet have also flagged job cuts at their respective companies.