Telecom NZ axes up to 1230 jobs

Expects to incur about $70 million - $80 million from one-off restructuring costs
Telecom NZ axes up to 1230 jobs

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.

More about: Telecom Corporation of New Zealand
References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: job cuts, gen-i, downsize, telecom corporation of new zealand, ASX, redundancies, Telecommunications
Get exclusive access to ARN's news, research and invitation only events.
ARN Distributor Directory
ARN Vendor Directory
Microsites

iAsset is a channel management ecosystem that automates all major aspects of the entire sales,marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

 
Computerworld
CIO
Techworld
CMO

Latest News

04:30PM
Broadband Solutions offers unified solution for hotel phone and web access
04:23PM
Liberal NBN plan unable to deliver tele-health: Jason Clare
03:01PM
TPG fined $400,000 for blocking triple O call
02:44PM
Public Cloud benefits can no longer be ignored: Bulletproof
More News
24 Apr
The China Healthcare ICT Conference 2014
05 May
CeBIT Australia 2014
06 May
Oracle Day 2014 - Across 2 Cities
06 May
Oracle Day 2014 - Across 2 Cities
View all events