StarHub’s Shake‑Up: Will You Be the Next to Get a “S” from the Spreadsheet?
StarHub, Singapore’s second‑largest telco, is tightening its belt and maybe even trimming its workforce. The company has hinted at a full‑scale “agile and lean” makeover that could mean a few of its 2,500 staffers might have to say goodbye to their desks.
- New competition looming – a fourth mobile operator, Australia’s TPG Telecom, is set to jump in this year, adding another layer of congestion to an already crowded market.
- Financial foreshadowing – last quarter’s earnings saw staff costs climb 15 % to $84.7 million, a clear sign that the company is re‑thinking its employee spend.
- CEO’s big picture – Peter Kaliaropoulos, who took the reins in 2018, wants to push digitalisation and efficiency like a Swiss watch: precise, reliable, and a bit flashy.
What the CEO is Betting On
“An agile and lean organisation to drive the execution of the business strategy is an important initiative,” the telco told the Business Times.“We’ll share the final structure once the review wraps up. No more comment until then.”So, no Spoiler Alert: Whether the downsizing will happen, when it will happen, or how many people will be let go, remains under wraps.
Who Owns the Power Play?
- Asia Mobile Holdings (via Singapore Technologies Telemedia) – 55.8 %
- Japan’s Nippon Telegraph & Telephone – 9.9 %
- BlackRock Fund Advisors – 5 %
- Singapore Press Holdings (owner of BT) – 0.75 %
Everything StarHub Actually Does
StarHub supplies mobile, cable TV, broadband, and fixed network services, all rolled into one big digital punch.
Their 26.7 % share of the domestic mobile market sits between Singtel’s 48.1 % and M1’s 25.2 %. That place in the middle is no golden ticket – the market is extremely competitive, so the company needs to stay sharp.
Market Buzz and Analyst Forecasts
- Julia from KGI Securities says that a deal involving Keppel Corp. and SPH buying M1 could boost telco valuations by the next few quarters.
- Luis Hilado at Maybank Kim Eng warns that we might see industry consolidation in 2–3 years.
- UOB Kay Hian and other analysts are still placing a “buy” on StarHub; the price target hovers around $1.92.
“Execution has upped since Peter took over,” praised Jonathan Koh, noting the rapid cybersecurity merger that turned former rival Accel Systems and Temasek’s Quann World into Ensign InfoSecurity.
Bottom Line
StarHub’s manoeuvre is like a smartphone reboot: power‑down, tidy up, and reboot with newer firmware.
Will employees feel the touch? Perhaps. Will the company keep its share price on a steady climb? Analysts say it might, if it can outsmart the incoming competition with seamless digital services.
Keep your hard hats on – you never know when the next “efficient shuffle” might hit!
