Vodafone says mass layoffs at its Australian sister company won't affect it.
"The restructure announced by Vodafone Hutchison in Australia is specific to that business and not related to Vodafone New Zealand," a spokeswoman said.
Vodafone Hutchison Australia, which lost $A260 million in the first half of 2012, is to layoff 10% of its workforce of 5000, or 500 staff.
The restructure includes a management shakeup, with Vodafone NZ CFO James Marsh moving across the Tasman to become Vodafone Hutchison Australia CFO (Vodafone NZ has yet to appoint a replacement).
The Telecom tie-in
Vodafone Hutchison Australia (VHA) was formed in 2009 when the UK's Vodafone and Hong Kong's Hutchison (operator of the 3 network) merged their respective Australian subsidiaries. Through a twist of fate, Telecom once planned a regional alliance with Hutchison. The alliance was never realised, but early plans did lead to Telecom buying a 10% in Hutchison Australia in 2000 - which converted to a 5% stake in Vodafone Hutchison post-merger. Telecom still holds the stake today (although Vodafone maneuvering has put paid to its board seat).
VHA, which trades as Vodafone Australia in most instances, suffered network issues in 2010 into 2011 that lead to a wave of customer complaints and a legal tussle with network partner Nokia Siemens. The company is now in the midst of a $A1 billion network upgrade, in part using Huawei kit, which will include 4G service from around April next year.
Although it won't be affected by the VHA cost-cutting, change is on the way for Vodafone NZ.
In its application to takeover TelstraClear (approved by the Commerce Commission earlier today), Vodafone said it planned to make cost-savings by eliminating back-office jobs where roles overlapped.
The carrier has yet to detail the extent of merger related staff cuts. However, it has said it will favour Vodafone's call centre operation, which was repatriated to NZ last year, over TelstraClear's operation, which was outsourced to Manila.
The two businesses will be run independently for five to six months while an assessment is carried out, Vodafone corporate affairs head Tom Chignell said today.
This afternoon, TelstraClear CEO Allan Freeth, who was widely tipped to depart, confirmed he would resign as the deal was finalised tomorrow.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Joyce associates openly talking about leadership change
- Whanganui’s Sarjeant Gallery to get multimillion dollar extension
- Parent, widow of Pike River casualties fail to force review of decision to drop charges against Whittall
- iPredict decision the work of 'officious aliens' – Crampton
- The post-Thatcher world
Most listened to
- Tim Hunter on why Veritas is doing it the hard way
- Matthew Hooton on whether Steven Joyce will be the next national leader
- Rodney Hide on why all city planners should be fired
- Nevil Gibson discusses his latest Editor's Insight on films
- The NBR crew throw around some of the week's top stories
- Rob Hosking breaks down the political and economic week that was
- "A tragedy" - David Farrar on his disappointment with Simon Bridges
- New F&P product pipeline exciting, says Macquarie senior investment adviser Brad Gordon
- Taupo Motorsport Park executive director Tony Walker on the park's rebranding
- NZIER senior economist Christina Leung on why she does not think the OCR will hit 2%
- NBR's Cameron Officer talks about the NBR Car of the Year 2015
- John Barnett on Brewer: ‘Boy, has he got a bit to learn’