StarHub’s Shake‑Up: 300 Jobs to Say Goodbye This Month
By the end of October, the Singapore telecom giant StarHub will be letting go of roughly 300 full‑time workers—about a tenth of its 2,500‑strong staff. The decision comes amid a broader “operational efficiency programme” aimed at tightening the belt and nudging the company back into a growth mindset.
Who’s Going? Who’s Staying?
Reports say that even the veteran chief strategic partnership officer, Jeannie Ong, will be heading the list of affected employees. She’s been with StarHub for 17 years, so it’s a big shock. The company says her role is being folded into a new senior position—the chief corporate officer—now taken by Veronica Lai.
In total, the company is reshuffling a bunch of non‑customer‑facing roles. Think of it as giving the back‑office a makeover: hiring more people in cybersecurity, home and enterprise solutions, and the ever‑essential customer‑care teams.
Why the Cut?
Chief Executive Peter Kaliaropoulos lists a laundry list of woes that pushed the company down the “cut‑cost” road:
- Heard voices are dying in the market—voice traffic’s getting low.
- Fixed‑bandwidth margins are shrinking, and the cost of pay‑TV content is hurting profits.
- High competition, new entrants, and a market already saturated with mobile and fixed services.
“We need to shift our operating model or risk bigger pitfalls later,” Peter says. The revamped structure is meant to get customers happier, keep teams accountable, and improve overall agility.
Money Matters
Beyond the headcount shuffle, StarHub will dip into a one‑off restructuring budget of about S$25 million. Yet the company assures that this won’t ruin the fiscal‑year 2018 earnings forecast. They’re projecting savings of S$210 million from 2019‑2021 by trimming procurement, leasing, network maintenance, and more.
What Happens to Those Who’re Leaving?
StarHub’s plan isn’t just a brutal “fire‑and‑forget.” The company says it will cooperate with the Singapore Industrial and Services Employees’ Union (SISEU), the National Trades Union Congress, and other agencies to help displaced staff land new gigs. In addition, counseling, coaching, and skills‑upgrading programs are slated to roll out.
SISEU’s executive secretary, Sylvia Choo, told the union’s spokesperson that the organization is ready to work hand‑in‑hand with management to ensure fair treatment and proper compensation.
Market Reactions
StarHub’s share price dipped slightly before the head‑count news hit, trading at S$1.87—down 1.63 percent. Remember, the company was just demoted from the MSCI Singapore Index to the Small Cap Index, and was dropped from the Straits Times Index last month.
Despite the layoffs, the company remains a serious contender in Singapore’s telco arena—second only to Singtel. The “transform and survive” mantra will decide who, if anyone, can escape the churn.
TL;DR
StarHub is trimming 300 jobs by October’s end, including senior exec Jeannie Ong, to tighten costs amid tough market conditions. It plans to invest in new tech and customer service roles while offering support to those left behind, hoping the re‑structured model will boost competitiveness and ensure a smoother future.
