200 management jobs slated to go at Telecom
- 14 April, 2010 22:00
Telecom has briefed analysts and media and confirmed Computerworld's story that 200 management staff face the chop as part of an acceleration for what Telecom CEO Paul Reynolds calls the "Cost Out" programme.
Computerworld reported earlier it understood Telecom intends to cut the 200 management positions – but none at AAPT – and that the cull will focus on managers who aren’t customer-facing.
The trading halt on Telecom shares that was announced at 10.07am was due to Telecom issuing new financial guidance for the 2011 and 2012 financial years.
The guidance was revised, says Telecom, for a number of reasons, including regulatory decisions on the Telecommunications Service Obligation and Rural Broadband Initiative made last month, and a softening revenue outlook, due to lower mobile revenue growth, price pressures in voice and data markets and flow-on impacts of the economic downturn.
EBITDA for 2011 was reduced from a range of $1.820 billion to $1.855 billion to a range of $1.720 billion to $1.780 billion. Projected EBITDA growth for 2012 was reduced from $70 million to $110 miilion to a range of $20 million to $80 million with a similar reduction in 2013.
The forecasts assume AAPT won't be sold and also assumes no impact from the government's Ultra Fast Broadband rollout.
Read more at Computerworld.