Singaporean telco StarHub has unveiled plans for a “strategic transformation” that will result in the loss of around 300 jobs.
Justifying the cuts, CEO Peter Kaliaropoulos said: “The intense competitive ferocity 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 initiatives.”
As for the substance of the transformation, StarHub said it will continue to invest in new businesses such as recently-created cybersecurity company (Ensign InfoSecurity).
It will also focus on “digitalisation initiatives to transform customer experience” and “industry-leading wireless and fibre services to deliver content and applications on any device to all consumers”.
Outside of its consumer-facing business, the company said it will also accelerate investments in technology solutions and capabilities for enterprise customers.
“Technological innovation and competition are redefining how we deliver services to our customers,” said Kaliaropoulos, “and we need to transform our operating model, otherwise we will face greater risks.
“Our revised structure will be best placed to meet our strategic intent, enhance customer experience, increase accountability and effectiveness and improve competitiveness and agility.”
The transformation programme is expected to realise US$150 million in savings over a three-year period from 2019 and was greeted positively by the stock market.
StarHub is also targeting savings in procurement, leasing, rationalising spending in network and systems repairs and maintenance and overall sales and distribution expenses.
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20th April 2019