Telecommunications provider 2degrees is planning to cut its 1,200-strong workforce by 10 per cent as it braces for the impact of the coronavirus pandemic.
2degrees chief executive Mark Aue today said the company was an essential service provider and more important than ever to customers, but it was not immune from the financial impacts of the crisis.
“The New Zealand economy is being impacted in unprecedented ways by Covid-19,” Aue said.
2degrees also briefed its people today on a range of cost reductions to respond to the impact, advising that while agreed measures went a long way, more would be required through staffing changes.
The company is therefore proposing a 10 per cent reduction in the company’s workforce.
In addition the company plans to reduce capital spending and defer non-essential projects, reduce operating costs including a freeze on recruitment, renegotiate supplier rates and vendor costs and an accelerate cost saving initiatives from 2021.
Aue said that although 2degrees’ people are its biggest asset, the "harsh reality" was that the company had to take decisive action, reducing staff numbers or the hours worked for some roles.
“We are a resilient business and will continue to invest in our mobile and broadband networks, and ensure our customers are well served by our New Zealand-based care team," he said.
"We owe it to our customers and staff to ensure we weather this storm, so we’re making some difficult decisions now to avoid bigger changes later.”
Aue said 2degrees was already seeing revenue impacts, and like all businesses, was in an unprecedented situation with uncertainty over how long it would last.
“We’re starting those difficult discussions with our people now and out of respect for them won’t be providing more detail until we’ve had time to fully consider their feedback.”