Optus to cut hundreds of jobs

TELCO giant Optus is planning to axe almost 500 jobs in its consumer and enterprise divisions as part of a major restructuring effort.

Supplied undated image obtained Thursday, June 19, 2014 of an Optus store in Sydney. (AAP Image/Optus) NO ARCHIVING, EDITORIAL USE ONLY

TELCO giant Optus plans to slash up to 480 jobs as part of a restructure.

Australia’s second-largest telco said roles across its consumer and enterprise divisions would be made redundant in response to an “increasingly competitive trading environment”.

“These changes require Optus to reshape its workforce with the skills required in an increasingly digital world and to invest in the capabilities required to bring ideas to market more quickly,” the company said in a statement.

“As a result, Optus is proposing to make a number of roles redundant. Optus will consult directly with affected employees to explore ways to mitigate the impact of these changes, including redeployment opportunities.”

The statement said the changes would see the creation of a new customer service model which involved “simplifying Optus’ billing and customer care systems, reducing customer hand-offs, and ensuring customers get a more consistent experience, no matter how they choose to engage with us.”

“It will also enable our in-store, online and tele-sales teams to collaborate more effectively, ultimately making it easier for customers to talk to us,” it said.

Optus in February refuted reports that it was planning to cut around 1000 jobs as part of a wide-ranging cost cutting exercise under chief executive Allen Lew, but said it was reviewing operations.

The telco surprised the media industry in November after clinching a three year, $189 million deal for the exclusive Australian broadcast and digital rights of the English Premier League, and last month said it will create a 24/7 football channel on its Optus TV service.

Reports have said the cost cuts will help fund its new strategy to buy expensive sports media rights.

Optus reported a 9.1 per cent rise in third-quarter net profit to $227 million from the same period a year earlier, helped by new mobile customer signings and further network improvements.

On Monday, the company said it will cut jobs in Optus Business, part of its enterprise division, as well as the Wholesale and Satellite business, part of its consumer division.

The company said the financial impact of the decision would be reflected in its first quarter results.