NBN Co to axe 500 roles as tech wreck hits broadband provider
The deepening ‘tech wreck’ that has already affected companies such as Atlassian, Meta, Amazon and Google has resulted in NBN Co deciding to lay off a significant percentage of its workforce.
Business
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NBN Co is axing abound 500 roles – or 10 per cent of its workforce — as it joins a growing list of companies hit by the global “tech wreck”.
The Australian has confirmed that roles will mostly be across middle and senior management, and will take effect by the end of the financial year.
“NBN Co this week started engaging with its employees about changes that will affect the size and shape of the company,” a spokesman for the company said.
“As a result of the changes, the company expects that around 10 per cent of current roles or around 500 people will be made redundant. The changes are expected to take place by June 30 this year and will affect all business units and most levels of the organisation.”
The majority of redundancies are expected to affect middle and senior management roles, he said.
“The company is seeking to preserve and grow field-based roles associated with its national fibre upgrade program, and the ongoing upgrades to its fixed wireless and satellite network.
“The company’s priority is to consult and communicate directly with employees in the first instance.”
The cuts mean NBN Co joins the likes of Atlassian, Meta, Amazon and Google in lay-offs that have collectively impacted thousands of Australian tech workers.
Communications Minister Michelle Rowland noted the cuts in a statement to The Australian.
“The changes made by NBN Co are significant and will personally impact a lot people,” she said.
“I expect NBN Co to consult closely with affected workers and the unions to manage this change sensitively and effectively.”
NBN Co is in ongoing discussions with retailers and the competition regulator about proposed pricing changes, which would come into effect in July.
Last month in its financial results NBN Co narrowed its losses and reported revenue up 4 per cent year on year to $2.6bn for the six months to December 31, 2022, and chief executive Stephen Rue said the company was on track to meet its 2023 performance targets, buoyed by demand for higher speed plans.
More than 8.5 million premises are now connected to the network nationally. It posted a net loss after tax of $444m, from $857m a year earlier.
“The importance of solid financial results is the ongoing growth of our business, and the maturity of our business as an operating entity means that we can continue to provide good customer service we can continue to compete for customers, and we can continue to invest in a network given people are going to need greater data over time,” Mr Rue told The Australian last month.
“The financials of our business are important because it provides the cashflows and also the ability for us to borrow the money we need to be able to do the ongoing enhancements to our network and to customer service.”
Originally published as NBN Co to axe 500 roles as tech wreck hits broadband provider
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