The 2023 network outage that brought Optus into the spotlight for all the wrong reasons could have further ramifications with staff bracing for potential redundancies.
Up to 90 jobs are expected to be lost on top of the 600 redundancies last year. Optus made 200 workers redundant in the two months before the outage, taking the tally to 600 last year.
“That’s another 90 workers who are left without a job in a cost-of-living crisis where it’s already hard enough to put food on the table and a roof over your head. It’s one thing after another at Optus and it’s the workers and customers who are paying the price,” Communication Workers Union national assistant secretary James Perkins said of the latest job-cutting speculation.
“The recent outage disaster is a clear example of what happens when you slash Australian jobs and continue to outsource critical roles. Optus should be investing in Australian jobs and its local network – not shaving it back.”
An Optus spokesperson did not give any detail about the potential cuts.
“We have no update to provide at this time,” a company spokesperson said.
Singtel’s restructuring initiative
Optus has reduced its workforce from more than 8,000 to 7,000, as disclosed in the company's latest sustainability report.
This downsizing is part of a restructuring initiative by Singtel, Optus's Singapore-based parent company, which incurred SG$18 million (approximately A$20.33 million) in staff restructuring costs last year.
The restructuring followed a significant network outage and included the departure of former CEO Kelly Bayer (ETR:BAYGN) Rosmarin after a challenging Senate inquiry.
Michael Venter, the chief financial officer, is serving as the interim CEO while the search for a permanent replacement continues, with potential candidates including former New South Wales Premier Gladys Berejiklian, who now oversees Optus’ business customer segment.
Network outage had severe consequences
The network outage had severe repercussions, disconnecting more than 10 million Australians from phone and internet services for around 12 hours and preventing nearly 2,700 from accessing emergency services via the triple-zero hotline.
The incident led to a Senate inquiry and the resignation of Rosmarin. Financially, the outage had a significant impact on Singtel's quarterly earnings, with a SG$54 million cost attributed to the incident and a 5.4% decline in Optus's revenue to SG$1.8 billion in the quarter ending December 31. However, earnings before interest, tax, depreciation and amortisation (EBITDA) saw a slight decrease of 1.8% to SG$465 million.
Despite these challenges, Singtel's CEO Yuen Kuan Moon remains optimistic about Optus' recovery and future, highlighting efforts to enhance network resilience and operational efficiency. Notably, Optus' mobile revenue saw a 2.3% increase to US$1.43 billion, with the company adding 228,000 new customers, bringing its total customer base to 10.5 million.