Hundreds likely to go in Optus review

More than 750 jobs could be made redundant under an internal review currently underway at Optus.

The telco has said redundancies are likely as a result of the review but refused to confirm numbers.

“We are not in a position to comment on how many people are likely to be affected at this stage,” a spokeswoman told iTnews.

The spokeswoman did not say when the review was due for completion.

However, highly placed sources within the company suggested 750 jobs in middle and line management are likely to be made redundant in the coming months, confirming similar reports from ABC News this week.

The company has 9700 staff, a decrease of nearly 500 from figures released a year before.

A separate, recent restructure saw 180 managers axed.

Optus is set to undergo a significant internal restructure after parent company SingTel announced a group-wide shift that would see current Optus chief executive Paul O’Sullivan promoted to take care of global consumer operations.

Other Optus executives were also boosted to global functional roles under the restructure.

Internal restructure

Newly appointed lieutenant and chief operating officer at Optus, Kevin Russell, told staff this week that the internal restructure would see the Australian business split into three new groups; marketing, sales and customer.

The new structure would take effect from the beginning of the company’s new financial year on April 1 and see further promotions for existing Optus executives.

Current Optus Consumer managing director Michael Smith will head marketing, Optus small and medium business boss Rohan Ganeson will lead sales while Vicki Brady will move from Optus Wholesale and Satellite to the customer branch.

At time of writing, the Optus’ spokeswoman could not clarify who would replace Brady in her previous role.

The internal restructure will centralise several departments, leading to duplicated roles which would spark the redundancies.

In an internal memo to Optus employees, sighted by iTnews, Russell told staff the restructure would address a “diluted” brand strength.

"In taking the fight to Telstra it’s clear our core Optus branded operations must be strengthened," Russell said.

“I believe a simple, functional structure will position us better to fulfil our potential.”

The newly formed customer branch would be charged with customer "care, logistics, credit and billing, as well as customer insights and retention" and would be"empowered to manage Optus customers from their first day to their last".

The restructure did not affect Optus Wholesale and subsidiary Virgin Mobile.

“I am acutely aware that for people working in Consumer and SMB this announcement creates a period of change and uncertainty,” Russell said.

Russell joined Optus in January from Three UK, where he was credited with restructuring the business to regain profitability.