Embattled Starhub axes 300 employees amidst restructuring exercise
A one-off restructuring cost of about $25m will be used for outplacement, training, and coaching.
Caught in the midst of intensifying local competition and new trends, Starhub will have to retrench 300 full-time employees as it as part of its move to reduce operating expenditure and go through a transformational plan, the firm revealed in a statement.
According to the firm, affected employees will be notified ‘as soon as practical’ and by October. Starhub thinks that the ‘on-going natural attrition and tighter management of contractor roles’ will make additional roles redundant.
A one-off restructuring cost of about $25m will be utilised to fund outplacement, training, and coaching.
“We wish to recognise the extensive contribution that our impacted employees have made to the company’s past development and growth,” StarHub CEO Mr Peter Kaliaropoulos said. “I am very aware of the impact on all our employees, and we are making every effort to support those impacted through this challenging transition.”
StarHub will consult with its affiliated firms, as well as the Singapore Industrial and Services Employees’ Union (SISEU), NTUC’s e2i (Employment and Employability Institute), and other government agencies such as Workforce Singapore to identify suitable roles for affected employees. They will also aid retrenched workers through comprehensive career transition and outplacement counselling, including coaching and skills upgrading programmes.
As part of its transformation plan, Starhub will focus and step up investments in its new businesses such as its cybersecurity firm Ensign. They will also move forward in their digitalisation initiatives geared towards customer experience and in wireless and fibre services to deliver content and applications.
“Our revised operating structure will be best placed to meet our strategic intent, enhance customer experience, increase accountability and effectiveness and improve competitiveness and agility,” the CEO explained.