Axe falls at Telecom NZ

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Axe falls at Telecom NZ
Simon Moutter, chief executive of Telecom NZ.

Large job losses, units up for sale.

Telecom New Zealand will slash up to 1230 jobs as part of a 'business simplification' and cost-cutting program.

Chief executive Simon Moutter initially flagged job cuts 'running into the hundreds' in February this year. 

The telco today announced between 900 and 1230 jobs will go, including recent staff cuts at its Gen-i Australia and AAPT subsidiaries. A spokesperson confirmed the exercise was mid-way to completion.

The job purge is aimed at middle management in human resources, finance, legal and corporate relations.

A Telecom NZ spokesperson said technical staff would be mostly spared the axe, but confirmed all areas would be affected.

The cuts will shrink the number of employees at the telco from 7530 as of 2012 to between 6300 and 6600 by the middle of this year, at a cost of NZ$70 to NZ$80 million (A$56 to A$64 million).

Telecom NZ hopes to lower payroll costs by NZ$90 to NZ$110 million a year as a result.

Up for sale

The company also revealed it was looking at exiting some areas of business and selling off certain associated units.

It declined to reveal which were under scrutiny but said some staff reductions would take place through employees moving across with sold businesses.

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