Optus has confirmed plans to shed 750 jobs over the next month, as the aggressive competition among mobile carriers claims more victims, reported the Australian Financial Review.
Optus is the Australian subsidiary of Singapore telco, SingTel. The company has about 9500 employees.
The redundancies fall mainly in senior and middle management, operations and back office support functions. Minimal customer-facing staff were directly affected, and about three quarters of the positions affected are said to be at its headquarters in North Ryde in suburban Sydney.
Optus said the job cuts would result in a one-off charge of A$37 million (US$38 million).
The carrier said the restructuring would remove unnecessary duplication and drive greater efficiencies in what was an "increasingly competitive trading environment", the newspaper reported.
"The changes mean that Optus no longer exists as a discrete entity in SingTel's accounts," the newspaper said. "However, it exists as a brand in Australia, and will continue to lodge accounts with ASIC for taxation purposes."
Reacting to the restructuring, David Kennedy, Ovum Research Director, said, "Optus announcement is in line with industry trends to put the customer relationship front and centre in business decision-making. The restructure makes a lot of sense in a market where customer service will be a key medium-term differentiator in the Australian market."
"Centralisation of sales, marketing and customer relations will provide the whole-of-company view Optus needs to manage its customer base more effectively," said David. "The loss of positions is a necessary evil; as the industry becomes more competitive and revenue growth slows, cost control is essential. The alternative is for competitiveness, revenue and market share to erode."
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