Optus has denied it plans to cut 1000 jobs under a sweeping $200 million cost-cutting venture but concedes there will be some changes to "help support business goals".
A report in The Australian, based on confidential internal documents, stated on Tuesday that about 10 per cent of the workforce would be impacted with most of the cuts to go from customer service and network roles in the next financial year.
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The reported job losses come under a three year cost cutting program headed by Optus chief executive Allen Lew to "increase the company's profits and fight against pressures in the mobile and broadband industry", the report states.
While confirming it continually reviewed its operations, Optus says it has no plans to make 1000 roles redundant.
"As our business evolves we anticipate we will need to make further changes to the way we organise ourselves to help support our business goals, but we have no specific changes to share right now," a spokeswoman said.
"Although our priority is to always communicate the details of any changes directly with employees first, Optus does not have plans to make 1000 roles redundant."
According to The Australian, the telco's cost-cutting plan includes slashing hundreds of staff from Optus' network division, retail staff and staff in corporate support roles to save $152 million.
Customer service staff in the fixed-line broadband division are also in the firing line, according to the report.
The review comes at a time of fierce competition between Optus, Vodafone Hutchinson Australia and Telstra for market share.
Fairfax Media reported last week on Telstra's continued dominance in the market with 16.9 million mobile customer subscribers compared with Optus' 9.37 million.
However Optus added 145,000 post-paid mobile customers to its books in the past six months while Telstra added 80,000.
Vodafone Australia grew its post-paid subscriber base by 74,000 during the same period.
Last month Optus recorded a net profit rise of 9.1 per cent to $227 million for the three months to December 31. Revenue increased 6 per cent to $2.43 billion, compared with the same period a year earlier.
But the average revenue per user (ARPU) growth began to slow with each mobile subscriber generating $44 a month on average.
On the back of the financial results, Mr Lew explained his response to heavy competition was to use content offers to get customers on board and spending more.
It spent $189 million over three years to buy the exclusive rights for Australian broadcasts of the English Premier League in November 2015.
"The key today is that competition is based purely on price, or whether it's more data allowances," he said in February.
"Because of the heavy competition existing, customers coming to the end of their contracts are recontracting at either lower plans or not using as much data when exceeding their bundles, and I think that's affecting average revenue per user."
with David Ramli