CommsChoice Group cuts staff amid business restructure

CommsChoice Group cuts staff amid business restructure

Brings offshore functions back to Australia and with eight staff set to go

ASX-listed CommsChoice Group is planning to restructure its business, which will see its offshore call centre downsized with key functions moving back to Australia and about eight staff made redundant as it aims to remove non-core costs from operations and sales areas in Australia.

The company also plans to pump more resources into its ‘key partners and indirect sales’ group, which it says has been experiencing positive momentum with channel partners, dealers, and IT service providers.

“We were not seeing the level of customer service and responsiveness we needed in our business to satisfy the needs of our Australian business and corporate customers,” interim CEO and managing director Peter McGrath told shareholders.  

“The restructure will improve customer service and focus sales activities on more immediate opportunities largely with partners and IT service provider customers.”

CommsChoice will also make an investment into enhancing its e-commerce capability where partners, businesses and corporates can order directly from its website, and provide a greater level of customer prospects and improved efficiency.

The restructure will commence in the months ahead, costing the company about $18.4 million, including $16.3 million write-down of non-cash related goodwill. It expects to save $2 million in total costs annually.

Additionally, CommsChoice is expecting to undertake $1 million in capital raising that will be used for restructuring and related costs.

The company also plans to expand into overseas markets, particularly in Asia, providing global cloud phone and SD-WAN offerings for multi-site corporate offices and using its international points of presence (PoPs) in 25 locations.

CommsChoice will also focus on core growth areas including the provision of cloud-based phone and related communications solutions to SME and corporate customers, using its MS Teams calling products and SD-WAN for multi-site organisations.

In focusing on partners and IT service providers, CommsChoice will turn its attention to contact centre SIP based call solutions, global business phone system resale and direct routing/business phone capabilities for MS Teams.

Opportunities with the national broadband network, and high speed last mile access for multi-site corporate networks on 4G and 5G networks will also be sought.

In April, CommsChoice announced CEO Ben Gilbert was leaving the company. He had ben the CEO since January 2017, having led the company through its 2017 public listing that took place through a merger of five businesses: CommsChoice; Telegate; Telaustralia; Oracle Telecom and Woffle.

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Tags restructure planCommsChoice; Telegate; Telaustralia; Oracle Telecom


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