Job cuts rumoured at Telecom
Telecom is this morning refusing comment on rumours reported by Radio Live and TVNZ that up to 2000 job cuts could be announced at the company's half-year results session this morning.
For its part, NBR ONLINE was told by a person with a company that works with Telecom that 50 jobs would go, including "the entire recruitment team." [UPDATE: A Telecom spokesman told NBR that the centralised recruitment team was likely to be disbanded in favour of each division doing its own hiring.]
Telecom is due to release its half-year result to the market at 9am, with a follow up audio conference for analysts and media at 10am (a break with the the company's tradition of inviting guests to an onstage briefing).
In August last year, Telecom said it had reduced its total head count to 7619 from (itself a chop from the prior year's 8629). The reduction is primarily due to staff who moved over to Chorus with the de-merger.
New CEO Simon Moutter has been widely expected to trim staff numbers, among other cost-cutting measures - although he has also launched two aggressive new intiatives: flat rate roaming in Australia and a transtasman cable joint venture with Telstra and Vodafone.
For this morning's announcement, Forsyth Barr is expecting:
- Revenues: $2.27bn, down -2% versus 1H12
- EBITDA: $503m up +3%
- Profit: $163m, up +66%
- Interim Dividend: 8 cents versus 9 cents in 1H12.
ForBarr has a hold rating on Telecom shares.