Telecom Corp of New Zealand (ASX:TEL) has undertaken a strategic review of its ICT services unit, Gen-i, which has resulted in a significant change in focus.
Gen-i’s Australian operations will concentrate on large corporate customers in Australia and New Zealand, exiting from other customer activities.
Total staff numbers will be halved as a result of the change, with Gen-i going from 160 to 80 employees.
It is anticipated that restructuring costs will come in addition to the redundancy costs associated with this action.
Telecom group expects to recognise a material one off charge in the second half of the current financial year following its strategic shift.
Telecom corporation posted a first half net profit of $129.2 million in the current financial year.
SPK Price at posting:
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