Optus takes axe to jobs

MELBOURNE - Singapore Telecommunications' Australian arm, Optus, plans to cut 450 jobs to slash costs in an intensely competitive market.

A company spokeswoman said 450 positions were being cut but only 200 staff would be affected.

"We are likely to remove 450 roles across the business, including permanent and contract positions, as well as vacancies that won't be replaced," spokeswoman Luisa Ford said.

The company plans to finalise details next week. Staff were notified of the plan yesterday.

The company had hinted that it would need to cut jobs by the end of the March financial year due to tough competition in the local market.

Optus's third-quarter profit fell 5 per cent to A$160 million ($184 million), despite revenue growth of 5 per cent.

It faces cut-throat price competition and slowing subscriber growth which threaten to erode profit margins further, with the market's dominant company, Telstra, focused on clawing back market share.

SingTel shares were steady at S$2.72 ($2.62) in line with a flat Straits Times index.

- REUTERS