Gen-i scales back Australian division

Staff numbers across the Tasman to be slashed from 180 to 60

Gen-i will axe 120 positions in its Australian division, as it scales back its business across the Tasman, chief executive Tim Miles announced today.

Miles signalled he was thinking about making changes to Gen-i Australia in an interview with Computerworld recently.

Staff numbers at Gen-i Australia will fall from around 180 to 60 employees. The remaining employees, based in Sydney, Melbourne and Brisbane, will support corporate customers (in New Zealand or Australia) with specific trans-Tasman ICT services requirements.

Gen-i Australia will also look to transfer some customer activities across to AAPT, Telecom’s Australian telco.

Miles, who has been in the CEO role for five weeks, says he has decided to trim back the Australian business because it doesn’t have the scale to compete for Australian-specific ICT contracts.

“Gen-i Australia was set up about 13 years ago to serve the trans-Tasman needs of existing corporate customers. Over the years, it has broadened its activities within the Australian ICT services market - but we have never had the scale to compete effectively in these other market segments.”

Miles says the Gen-i Australia contribution to revenue was not significant. At Telecom’s half year results last month the company announced EBITDA for Gen-i was $186 million, down 1.6 percent when compared to the previous half-year result.

Asked if the resignation of Gen-i Australia chief executive Paul Wilson at the beginning of February influenced today's decision, Miles said he won’t discuss individual positions.

Miles is conducting a strategic review of Gen-i’s business. He says current staffing numbers in New Zealand are around 2400.