Starhub will retrench 300 full-time employees as part of its strategic transformation plan to allow the telco to focus on its new businesses and its digitalisation efforts.
The company said the employees that have been let go consists more than a tenth of its 2,500 full-time staff members and will come with a one-off restructuring cost of more than S$25 million.
The layoffs will allow it to improve operational efficiencies and productive as it aims to become an industry-leading wireless and fibre services provider, as well as serving its enterprise customers better.
“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,” said StarHub’s chief executive officer Peter Kaliaropoulos.
“Technological innovation and competition are redefining how we deliver services to our customers and we at StarHub need to transform our operating model, otherwise we will face greater risks in the future. 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.”
The overall strategic transformation programme is expected to bring in $210m in savings for the company over a three-year period from 2019. In addition to workforce reduction, StarHub is targeting savings in procurement activities, leasing costs, rationalising spending in network and systems repairs and maintenance and overall sales and distribution expenses.