Peter Kazacos will reduce his working week from five days to two and take on a broader role across the Telstra Business and Government group, according to KAZ group chairman, David Thodey.
In an internal email to staff, Thodey said Kazacos would remain on the board of directors of KAZ Group, as well as TelstraClear's New Zealand IT services company, Sytec.
"I would like to assure you that Peter will continue to have a very real and crucial involvement in the strategic planning and direction of KAZ," he said in the email. "Peter feels he has met his personal objective to build an Australian IT services business that could compete on a multi-national level and that now is a good time to reduce his involvement in the day-to-day management of KAZ."
Kazacos plans to pursue interests and hobbies, spend more time with his family and continue his involvement in the industry through boards and committees.
"I'm now looking forward to a continuing association with KAZ and the technology industry as well as the opportunity to spend more time on some of my personal interests," Kazacos said in a statement.
Independent telecommunications analyst, Paul Budde said the latest staff reshuffle was yet another sign the takeover wasn't working.
"It means the end of KAZ as a very vibrant systems integrator," he claimed.
While Budde initially welcomed the Telstra takeover of KAZ as a positive move, he was worried the acquisition was yet another move by Telstra to gobble up a local ICT business and mould it into the Telstra bureaucracy.
A year into the acquisition, Budde said most of the key staff had flown the coop. But IDC research manager of vertical markets, Phillip Allen, said the Kazacos move made sense.
"It makes sense for an organisation to have one head rather than two," he said.
Allen predicted Kazacos would remain a powerful force within the company, and the overall IT community.