StarHub announced on Wednesday, October 1, that it will be cutting about 300 employee head-counts due to a strategic business review.
The workforce reductions will primarily affect non-customer facing functions, the telecommunications firm said in a press statement. "On-going natural attrition and tighter management of contractor roles" will also render additional roles redundant.
StarHub will be notifying employees as soon as practical, and no later than the end of October 2018.
As part of its strategic transformation plan, Starhub initiated an operational efficiency programme to improve productivity, speed up decision making and lower operating expenditure across the board.
The strategic review process has "unfortunately resulted in the conclusion that a reduction of workforce is required".
Moving forward, the company will focus and continue to invest in new businesses such as the recently created cyber-security company (Ensign InfoSecurity), digitalisation initiatives, as well as wireless and fibre services. The company will also accelerate investments in developing enterprise solutions.
“The intense competitive ferocity right across the market, new entrants, lower voice revenues, thinning margins for fixed broadband services, high content costs for Pay TV operations and high market penetration for mobile and fixed services, has necessitated efficiency optimisation initiatives as part of the strategic transformation plan,” stated StarHub’s CEO Mr Peter Kaliaropoulos (Peter K).
“Our revised operating structure will be best placed to meet our strategic intent, enhance customer experience, increase accountability and effectiveness and improve competitiveness and agility,” he added.
Starhub's overall strategic transformation programme is expected to realise S$210 million in savings over a three-year period from 2019. A one-off restructuring cost of approximately SGD25 million which includes funding to support outplacement, training and coaching will be incurred. Such cost will not have any impact on StarHub’s guidance for FY2018.
StarHub will work closely with its affiliated companies, the Singapore Industrial and Services Employees’ Union (SISEU), NTUC’s e2i (Employment and Employability Institute) and government agencies such as Workforce Singapore to identify suitable roles for impacted employees.
Support will also be provided in terms of comprehensive career transition and outplacement counselling, including coaching and skills upgrading programmes, the press release added.