Optus cuts more jobs

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Optus cuts more jobs

Optus is in the final stage of its company-wide restructure designed to combat ‘intense competition’ in the mobile telecommunications market, cutting 275 jobs from its Business division and Alphawest subisidary this month.

Optus announced in May it would slash 750 jobs from senior and middle management, operations, back office and support functions, as part of a $37 million restructuring operation.

None of the redundancies were voluntary. Sydney was the hardest hit region, making up two-thirds of sacked workers.

Optus executive Kevin Russell said at the time the redundancies were necessary for Optus to remain competitive.

"The competitive environment requires Optus to have a sustainable cost structure to remain competitive and continue to deliver value to our customers," he said in a statement.

"By creating a more efficient organisation with a renewed focus on the customer, we will be able to compete more effectively."

Optus today confirmed to CRN workers were currently being let go from its Optus Business division and Alphawest subisidary.

475 workers were let go in Optus' first quarter ended June 30 2012, from its Consumer division.

It said most of the last round of redundancies would be made in Sydney and in Melbourne.

Optus also confirmed the consolidation of roles resulting in the creation of new customer, marketing and sales divisions was underway.

"As part of this process we have identified additional synergies across the Optus Business division which will bring together the capabilities of Optus Business and Alphawest to create a more aligned ICT organisation, and will result in the consolidation of some roles and functions," a spokesperson told CRN.

In its 2012 financial year, Optus parent SingTel reported the company recorded a 1.1 percent decline in operating revenue to $2.3 billion and a 2 percent rise in net profit to $787 million. 

SingTel said the results reflected “continued intense competition and the mandated reduction in mobile termination rates from 9 cents per minute to 6 cents from 1 January 2012.”

Its mobile-related operating revenue dropped 3 per cent, and its mobile service revenue fell 2 percent to $1.2 billion.

Earlier this year, prior to its redundancy program, Optus Business grew its workforce in India with additional headcount to support the growth of its 24/7 Enterprise support service. The addition of extra staff followed a similar, earlier move by Optus Consumer. 

Optus Business said that initiative did not result in any redundancies and was a supplement to its 24/7 Enterprise support service in Australia.

Updated 11:12am to include Optus comments around Alphawest.

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