SingTel Optus is poised to cut more jobs in its marketing, IT and networks departments, as it confronts slowing growth in mobiles and readies itself for the NBN battleground.
The number two carrier’s consumer chief executive, Kevin Russell, announced the changes in an internal email to staff on Tuesday afternoon. While the restructuring is still being finalised, it is believed that total jobs at risk will be less than half the 963 positions the number two carrier shed last year.
“I understand this will create uncertainty across these areas which is challenging. We are working to finalise and communicate changes as quickly as possible and plan to have all new structures in place by 1 April,” Mr Russell said in an email circulated to staff.
Under the changes, marketing functions will be moved within the company’s customer division, while IT and networks functions will also be streamlined.
A new strategy and fixed line division will be created, which Mr Russell said aimed to “greater leverage the opportunities provided by the NBN”. The new division will be led by former vividwirless CEO Martin Mercer who will report directly to Mr Russell.
Last week, Optus recorded a 6 per cent decline in quarterly revenues. But last year’s aggressive cost cutting drove a 2.5 per cent increase in earnings, before interest, tax, depreciation and amortisation of $576 million.
Mr Russell said last week that there were no immediate plans to further trim headcount but that the company would continue to keep a tight lid on costs.
“It’s just a case of making sure that we review our cost structure, and continually; it’s not something that you chop and change,” he said at the time.
Optus head of corporate and regulatory affairs, David Epstein, said the company expects to make “further consequential changes to some roles in its current organisational structure as the program is implemented.”
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