Telecom NZ axes up to 1230 jobs

Expects to incur about $70 million - $80 million from one-off restructuring costs

Telecom Corporation of New Zealand (ASX:TEL) is reducing its employee base by slashing up to 1230 jobs by mid-2013.

The telecommunications service provider expects to reduce its full-time equivalent staff numbers from 7530 (as of December 31, 2012) to between 6300 and 6600.

Most of the staff cuts will be from its Auckland head office and will affect corporate and management functions in human resources, corporate relations, legal and financial departments.

The cuts include the 120 job redundancies made in its ICT services unit, Gen-i, last month.

The company said, in a statement, that the cuts will be made through constraints on recruitment activity, voluntary and involuntary recruitments, as well as transfer of roles to other employers associated with portfolio rationalisation decisions.

Telecom NZ chief executive, Simon Moutter, said the downsize is a result of a new company strategy to drive “simplification and a competitive cost base”.

“This is an important step to build a leaner, more agile organisation with a competitive cost structure, setting us up to win in the market,” he said.

As a result of the restructure, the company expects to incur one-off costs of $70 million to $80 million in FY13.

It claimed that the flow on impact of the changes onto revenues and non-labour operating costs is uncertain, as is the expectation of further redundancies and other one-off costs. A second update will be provided once the decisions are taken.

Telecom NZ’s adjusted EBITDA for FY13 remains at $1.04 billion to $1.06 billion, excluding the one-off restructuring costs.

CHANNEL CHOICE: Vote Now for your favourite in the three categories: Vendor, Distributor and Reseller. Voting closes August 8.

Tags job cutsgen-idownsizetelecom corporation of new zealandASXredundanciesTelecommunications

More about Telecom Corporation of New Zealand

Comments

Comments are now closed

 

Latest News

05:28PM
Channel’s Software-Defined Everything competency will be specialised: Schneider ...
04:33PM
Communications Alliance urges caution in online copyright debate
04:13PM
The “always-on” business needs quick recovery: Veeam
03:44PM
Atmail Cloud billings jump 900 per cent on Zuora SaaS platform
More News
05 Aug
Systems Technology Day - Build Your Own Private Cloud
06 Aug
Oracle Employee Experience Journey Mapping Workshops
20 Aug
Westcon Group Imagine 2014 - Melbourne
21 Aug
CAST 611 Advanced Penetration Testing
View all events