Sky TV axes 170 local staff as roles sent offshore, says move will improve support

Sky TV has confirmed around 170 local roles will be axed.

The broadcaster earlier revealed a proposed restructure that would cut 90 roles in its technology and content operations teams and around 80 in customer care, following consultation.

Those cuts were confirmed today as Sky revealed an outsourcing partnership with Probe CX Group - which specialises in Manila-based call centres - and Indian outsourcing giant Tata.

Sky says the restructure will see a net gain in its helpdesk operation as 200 new roles are created in the Philippines and 100 support roles (from the former 180) are retained in NZ to deal with more complex queries.

The restructure involves $6 million in one-off costs but from 2024 will save the company $6m per year, Sky says.

The company is just kicking off its first major hardware upgrade in a decade with the launch of its new Sky Box and Sky Pod.

About 30,000 Vodafone TV customers are being migrated to the Sky Pod, while 517,000 users of the Sky decoder are in line for any upgrade to the Sky Box.

Is this the worst possible time to cut local support staff? Not according to Sky chief executive Sophie Moloney, who earlier told the Herald that the restructure was triggered because of the new hardware. The company knew it needed more hands on deck for the rollout and restructuring was the way to achieve it.

Sky already worked with Probe CX locally, allowing it to fast-track the process, which was first announced on February 21.

“We’ve already done deep reviews and due diligence,” Moloney says.

The Sky boss said the changes boosted total support staff from 180 to 300.

“We’ll be around 700 permanent employees once the changes are implemented,” Moloney said.

The changes are due to be completed by June 30.

Shares were down 1.2 per cent to $2.55 in early afternoon grading, outpacing a 0.7 per cent NZX50 fall. The stock is down 6.0 per cent over the past 12 months.

Sky’s restructure follows a move by accounting software provider MYOB to cut “more than 80″ local positions as some support roles were moved overseas, and Wellington-based Xero’s move to lay off 800 staff, or 15 per cent of its global workforce, with further cuts to come in June.