Telecom tipped to shed jobs

Job cuts may be in the wind at Telecom as the nation's largest listed company is on the verge of a major reorganisation, observers say.

The company will shortly disclose a plan to merge its fixed-line and mobile divisions into one, in a move aimed at organising the business along customer lines rather than product lines.

Such a reorganisation could lead to staff cuts, particularly in marketing and sales, observers say. The different divisions will aim to service all customer needs, rather than just a sector.

It is not clear how soon Telecom will disclose details such as timing of the move or costs of implementing changes, including any staff cuts.

However, the plan has been broadly welcomed by the market, even though Telecom's shares fell 3c to $5.83 yesterday.

"Targeting the same person with three or four marketing teams does not add up," said one fund manager. "It is a sensible way to address the market."

Telecom head of mobile Kevin Kenrick will head up the merged consumer business unit, with fixed-line boss Matt Crockett reporting to him, according to reports.

Chief operating officer Simon Moutter would take charge of the fixed and mobile business market, while chief information officer Mark Ratcliffe moves into a broader role responsible for network management and Telecom's wholesale business.

Sources said Crockett had been angling for the top job in the merged unit, but would likely be passed over because he had only been in his present position for a year.