14 Mar 2013

Telecom cuts 120 jobs in Australia

7:12 am on 14 March 2013

Telecom is continuing to shed staff to remain competitive with its rivals, axing two-thirds of its workers in its corporate IT services unit in Australia.

The listed phone retailer says its Gen-i Australia arm will now concentrate on its large corporate customers on both sides of the Tasman, providing internet-based telecommunications networks and related services.

Some 120 of its 180 staff will lose their jobs.

IDC's IT services manager Adam Dodd said Telecom's decision to focus on large firms is sensible as the business tends to be more profitable in what is a very difficult sector.

He said heavy jobs losses at Telecom's corporate IT services in New Zealand are also the cards, but he does not expect that they will be of the same proportion as in Australia.

Telecom did not specify how much the changes would cost, but did say it would be material.