Optus disconnects 350 staff
- 10 October, 2001 12:21
Optus has announced plans to shed more than 350 staff in a bid to cut costs by $75 to $100 million by the end of the next financial year.
Chris Anderson, chief executive of Optus said in a statement that the restructure was the result of 'Operation Win Through', which was launched on August 17.
"In August we announced that Optus needed to realign its cost base as well as reduce capital expenditure and other outgoings. The first phase of the review is now complete and implementation began today."
He said that, as part of the restructure, reporting lines within each of business units will be "simplified" and "duplication of tasks has been removed".
Anderson also said in the statement that there will be an "overhaul of the way information technology systems are handled".
A spokesperson for Optus declined to comment on this statement and said more information would be forthcoming.
In regards to job cuts, the spokesperson again declined to comment on whether IT would be affected. He said the redundancies would come from across all parts of the business.
According to Optus' statement, redundancies will be announced in two phases, the first today affecting 250 permanent staff and up to 100 contractors.
Anderson said Optus's first-half performance would be weaker than the second due to some one-off costs and seasonality factors as previously disclosed.
"We announced with our annual results in May that there would be a slowing in our growth and in the market overall."
Optus is now owned by Singapore Telecommunications (SingTel). It completed its $14 billion takeover of Cable & Wireless Optus, securing 93 per cent of CWO's share capital, in late August.