Optus to slash 400 jobs

Optus has confirmed plans to cut 400 jobs.

A spokesperson for the telco said the redundancies were a product of its strategy to create a “world-class, mobile-led, digital service provider which leverages technology to deliver more game-changing experiences and premium content to customers”.

“Optus is making a step-change to the way we work, do business and fund future investments so we can continue to thrive in our increasingly competitive and disruptive market,” the spokesperson said.

“As we make these important strategic decisions, we will ensure we have the right skills and capabilities in place to build our digital organisation, remove duplication and establish a more sustainable cost base.”

As of the end of 31 March, Optus had 8515 employees — compared to 8591 at the end of December and 8738 at the end of 31 March 2017.

Optus has for a number of years pursued the aim of becoming “a mobile-led entertainment brand”, including investing heavily in digital content.

Earlier this month the telco revealed it had extended its exclusive Australian licence to Premier League matches for a further three seasons, beginning in August 2019. 

The telco also launched Optus Sport access for non-Optus customers. The $14.99 per month service includes streaming of the 2018 FIFA World Cup.

Last week Optus confirmed it planned to phase out the Virgin Mobile brand over the next two years. Some 200 employees and 36 retail stores are expected to be affected by that decision.

Optus’s full year results revealed that the telco’s operating revenue increased 3.4 per cent to $8.71 billion, with EBITDA growing 3.9 per cent to $2.77 billion. Its Q4 net profit dropped $208 million on the back of lower NBN migration revenues, however.

Andy Penn, CEO of Telstra, recently warned investors of a “step change in the competitive environment” thanks to the roll out of the NBN and increased competition in the mobile space.