Just days after announcing the closure of Virgin Mobile with the loss of 2o0 jobs, Optus has now announced it will shed a further 400 jobs as it restructures to face "a disruptive market."
Optus gears up for competition with more job cuts
Optus is set to make around 400 roles redundant in a bid to “remove duplication” and reduce its operating costs.
The round of redundancies is generally seen as a restructure in response to the imminent launch of TPG Mobile - or as Optus describes it, "an increasingly competitive and disruptive market".
"As part of our strategy, we are creating the next-generation Optus – a world-class, mobile-led, digital service provider which leverages technology to deliver more game-changing experiences and premium content to customers," an Optus spokesperson said.
"As we make these important strategic decisions, we will ensure we have the right skills and capabilities in place to build our digital organisation, remove duplication and establish a more sustainable cost base.
Virgin Mobile stores will be closed within one month
Just days earlier, Optus announced the demise of its Virgin Mobile brand. It will close the 36 Virgin Mobile stores by the end of June 2018, impacting 200 employees.
Optus has encouraged Virgin customers to begin planning their move to Optus-branded services, although contracted customers can continue to use their service in the same way they always have for up to two years. Optus invited existing customers to input their details into a web form to check migration deals.
“If you're still within your commitment period, your service will continue as per usual.
“Customers who are out of commitment can now preview great value Optus plans.”
New Virgin postpaid mobile and data-only services will only be accepted up until mid-June. After then, existing users “will be able to visit Optus retail stores for sales enquiries, replacement SIM cards and handset repairs”, Optus said.
Virgin Mobile Australia was established in 2000 as an equal joint venture between Optus and Virgin Mobile UK, with the latter increasing its stake to just under 75 per cent in 2002. Optus then bought out Virgin Mobile UK in 2006 for $30 million.
Last year, Optus rebuffed offers to buy the Virgin Mobile business from it, including former Telstra director Geoff Cousins.