Singapore-based mobile operator StarHub initiated a cost-cutting programme designed to improve productivity and announced it will eliminate about 300 non customer-facing, full-time positions.

The efficiency initiative, part of a broader strategic transformation plan, targets SGD210 million ($153 million) in savings over three years from 2019 and also aims to speed up decision making and lower opex.

StarHub, the second largest operator in the city state with a 27 per cent market share by mobile subscribers, said in a statement ongoing natural attrition and tighter management of contractor roles will result in additional jobs being made redundant.

CEO Peter Kaliaropoulos said: “The intense competitive ferocity right across the market, new entrants, lower voice revenues, thinning margins for fixed broadband services, high content costs for pay-TV operations and high market penetration for mobile and fixed services has necessitated efficiency optimisation initiatives.”

Simplifying offering
He explained technological innovation and competition are redefining how StarHub delivers services, noting “we need to transform our operating model, otherwise we will face greater risks in the future. The strategic review is aimed at simplifying our company structure, product offerings and customer touchpoints with the ultimate aim to be more agile.”

The operator will incur a one-off restructuring cost of about SGD25 million, which includes funding to cover outplacement, training and coaching. The costs will not have an impact on StarHub’s financial guidance for 2018, it said.

In addition to workforce cuts, StarHub said it is targeting savings in procurement activities and leasing costs; and rationalising spending in network repair and maintenance along with overall sales and distribution expenses.

In Q2 the company reported a 21.6 per cent year-on-year drop in net profit to SGD62.7 million, with mobile service revenue falling 6.6 per cent.