Telecom NZ’s ICT services division, Gen-i, is significantly reducing its Australian presence through a services migration agreement with Telstra.
The deal gives an undisclosed number of Gen-i’s customers in Australia the option to migrate to Telstra, at which point the telecommunications provider will sell those approved customers its products and services.
But while the move is optional, Gen-i intends to offload as many as possible to the telco.
As a consequential component of the contract, Gen-i will be reducing its staff count in Australia. It expects to maintain a minor local presence, but has confirmed it “anticipates a significantly reduced” workforce in the market; the number of job cuts has not been revealed.
Gen-i made 120 staff redundant in Australia in March 2013 as part of a strategic review which saw its headcount drop from 180 to 60 in the market. It has since maintained this number of employees.
The Telstra agreement and upcoming sackings are part of Gen-i’s review of its Australian operations.
It preludes the rebranding of its parent, Telecom, to Spark, a transformation which was announced in February and is set to take effect in August. Once implemented, Gen-i will operate as Spark Digital Solutions.
“Our move to Spark in August reflects our singular focus on enabling New Zealand businesses to succeed in the digital world, both here in NZ and wherever else they may operate,” Gen-i chief executive officer (CEO), Tim Miles, said.
“This new agreement with Telstra will enable us to support our customers’ current and future requirements on both sides of the Tasman with the speed, agility and flexibility needed in today’s business environment.”
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Moving forward, Gen-i Australia said it will act as a dealer which promotes approved Telstra products and services to customers which require local support.
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