2degrees joins fellow telcos, cuts staff
Companies admit AI part of reason behind cuts to staffing
2 degrees is the latest telco to trim numbers, following Chorus, Spark, One NZ and much of corporate New Zealand as a whole.
An insider told the Herald two positions in the telco’s technology team had gone, with a further 17 under consultation.
“Earlier this year, 2degrees established and appointed two new executive roles designed as we position ourselves for further growth,” a 2degrees spokesman said.
“The change created a blended digital and network team — allowing for more collaboration between vital functions, more efficient delivery of projects and further aligns with 2degrees’ vision of being a software-defined business.
“We have proposed a number of role changes to align with this new structure.
“As we are currently consulting with staff, it isn’t appropriate to talk to the details until they are confirmed, but we can say we are proposing that fewer than 20 positions are reduced across the technology team of 450 people.”
No other teams were going through the same process.
Meanwhile, One NZ chief executive Jason Paris on Thursday morning said about 200 of 3500 staff were leaving the business after a recent round of consultation.
Paris said the tough economy was a factor. “But the other part of it is that over the last five years we’ve dramatically simplified the business. We’re a much higherperforming business than we were — and that means we need fewer people behind the scenes with the masking tape to keep things together.”
The CEO added: “And it’s certainly the worst part of my job, or anyone’s, to tell someone they’ve lost their job, because it’s a tough market out there. And it’s not just impacting them, it’s impacting their wider whānau. But we’re proud of how we help people through that situation.”
Affected staff were given up to three months’ notice and help finding new roles.
Dozens of staff have been cut at Chorus as the company transitions from being the Ultrafast Broadband (UFB) network builder to operator.
And Spark New Zealand staff were called into restructure meetings earlier this month. The telco says it is on track to achieve its target of $40 million to $60m savings this year, in part through the use of artificial intelligence (AI) and automation. An insider said 22 non-product roles would go from marketing, with cuts expected in other areas.
The telco would not comment on numbers. “We don’t have further details to share at this time as we are focusing on consulting with our people first and foremost,” a spokeswoman said.
Spark shares were recently trading at $4.78. The stock is down 5.06 per cent over the past 12 months.
One NZ is owned by NZX-listed Infratil, whose shares were recently trading at $10.80 or 20.6 per cent up on the past 12 months.
2degrees is privately-held, owned by Voyage, a joint venture between a Macquarie Group infrastructure fund and Australia’s largest superannuation fund, Aware Super.
At its March 5 investor day, Infratil said One NZ was on track to meet full-year ebitda guidance of $580m to $620m, or an estimated 14 per cent earnings growth.
The presentation said: “A smaller, more highly skilled workforce is emerging.” Reduced hierarchy, simplification and centralisation of functions had enabled a “significant and ongoing rationalisation of our back office”. There were reduced call volumes and higher first-time resolution for customers. AI was now being scaled “to drive significant further productivity improvement”.
Paris said all businesses needed to start getting to grips with AI, if they weren’t already, and individual staff needed to take heed, too.
“AI is not going to take your role, but someone who knows AI better than you will. So you need to understand this technology.”
Arecord stand between Izzy Gaze and Brooke Halliday couldn’t prevent New Zealand from losing their final T20 international to England in Wellington.
England ran out 4-1 winners in the series after signing off with a fivewicket victory at the Basin Reserve.
The White Ferns, seeking to end the fivematch series on a high, were in big trouble at 69-5.
But Gaze and Halliday put together a record sixthwicket partnership to give their side some hope.
They combined in a 56-run stand, and though Halliday was well caught for 33 at the start of the final over, Gaze went on to complete her highest score in representative cricket.
She hit a four with a reverse sweep off the final ball to reach her halfcentury, finishing unbeaten on 51 from 28 balls to push the White Ferns to 136-6.
New Zealand lost three batters in their six-over power play. Nat SciverBrunt struck twice in that period, including having Bernadine Bezuidenhout caught behind off the fifth ball of the innings.
Amelia Kerr, leading the side in the absence of Sophie Devine who injured her quad in the fourth match of the series on Wednesday, fell in SciverBrunt’s next over. Kerr gave Alice Capsey a simple catch to be out for five.
England struck twice more in the space of four balls to leave the White Ferns 31-4.
Opener Suzie Bates’ attempt to hit out against Charlie Dean cost her her wicket, and Georgia Plimmer went in similar fashion to give Sophie Ecclestone the first of her three wickets.
Ecclestone then showed lightning-quick reflexes to take a catch off her own bowling as Maddy Green fell for 10.
Maia Bouchiere edged behind from Lea Tahuhu as New Zealand picked up their first wicket at the end of the third over of the reply.
Gaze, who had missed a stumping chance to remove Capsey, made amends when she whipped off the bails to dismiss Dani Wyatt for 21 and leave England 64-3 after 10 overs.
The tourists were then able to keep the runs ticking over as Sciver-Brunt and Knight combined in a 57-run partnership. Amelia Kerr took 3-30, including the wicket of Sciver-Brunt, but a couple of late no-balls late in the reply, with the game still in the balance, damaged New Zealand and England were able to get home with an over to spare.
An elevation to All Blacks captain is the last thing on Ardie Savea’s mind as he relishes life in Japan on and off the field.
The world player of the year will be available for the first test of the season against England on July 6, feeling refreshed already from his stint with Kobelco Kobe Steelers.
But while Savea is confident he can make a smooth transition from Japan Rugby League One and back into the black jersey, he’s more circumspect about his chances of assuming the captaincy.
New coach Scott Robertson will name his captain when he announces the squad for the two-test series with England, and many feel Savea is primed for a promotion.
That may be on permanent basis, if Robertson intends for a clean break from the previous era, or perhaps only temporary, with incumbent skipper Sam Cane under an injury cloud during his own Japanese sabbatical.
But Savea insisted he hadn’t considered what that prestigious role would mean, focusing instead on a more immediate goal.
“There’s a lot of talk of me being in this team — I need to make the team first,” said the 78-test veteran. “I’m away, I’ve been watching Super Rugby and there’s some great players that are playing.
“[The captaincy] is the last thing that’s on my mind. Being here has kind of given me a new perspective and, to be honest, it’s not even a focus.
“We’ve got new coaching staff, so I have no idea what the pecking order is or what’s even happening. We’ll just have to wait and see.”
Savea has been in infrequent contact with Robertson since the long-time Crusaders coach succeeded Ian Foster, but he has heard encouraging reports about the new regime.
“I’ve had a few conversations with Razor, just around feedback on my game and what I’m doing well and what I need to improve on or work on. It’s been minimal but it’s all that I need over here in terms of how to be better, how to get better and what I’m doing well.
“The All Blacks boys have had camps, and from what I’ve heard, it’s been pretty refreshing and pretty new and exciting, the lads have said.
“I’ve kind of just kept away from New Zealand rugby — I’ve just watched the Hurricanes boys and Bus (brother Julian) playing for Moana. But everything else, I’ve gotten away from New Zealand and just enjoying my time here in Japan.”
Along with a couple of familiar faces — Brodie Retallick is his locker-room neighbour while former Hurricanes teammate Ngani Laumape was integral to his recruitment — Savea is also enjoying the unknown after a career spent entirely in Wellington.
“It’s been it’s been real refreshing to come to a new team and just start over again and get to know people and figure things out,” he said. “When you go to Super Rugby and you play for 10 years, you know what’s expected, know what’s coming. Whereas here, I’ve come with the unknown feeling, which has kept me on my toes.
“I’ve just been enjoying and loving every moment, in terms of the footy, the team, the environment. Just everything about it.
“The food over here, the lifestyle, just being able to experience a new culture. And also the footy here is pretty class, which kind of not surprised me, but there’s really good players over here playing in this competition.
“So far, it’s been refreshing, mentally refreshing. So hopefully that pays dividends when it comes to All Blacks time. But I’m just investing myself into Kobe and trying to win a championship here.”