Spokesperson cites increased labour costs, 'tough operating environment with ongoing cost inflation'
Telecommunications firm Spark has been looking into decreasing the number of staff members in an attempt to restructure its business through cost-cutting measures, says an article by Stuff.
“Over the first six months of our financial year, our labour costs have increased, and in the context of a tough operating environment with ongoing cost inflation, this is not sustainable,” a spokesperson said.
The firm’s operating model is also set to undergo changes across various sectors of the telco. The spokesperson said in Stuff that the organisation will focus on investments for growth while leaning towards efficiency through the removal of duplication, working differently, and using technologies such as AI.
Excellence Award winner Heather Polglase, Spark’s CPO, was featured in HRD’s Commemorative Guide 2023.
Consulting with employees about restructuring
But before changes are made at Spark, there was consultation with employees to make sure that they will be given ample support if any transitions occur, said the spokesperson.
While there were no specific number revealed about the extent of roles that will be impacted by the restructuring, Spark reported it has 5,432 employees in its annual report for 2023.
Spark had a 4.8% fall in its net profit in February, which had only amounted to $157 million for the first half of the FY2024 financial year. This was a significant decrease from the $837 million garnered in net profit in the previous year. However, its adjusted earnings before interest, taxes, depreciation, and amortisation saw an increase.
