Optus to cut 200 jobs after horror year
Optus is cutting 200 jobs across its business as Australia’s second-largest telco tries to reset after a disastrous year that included a Triple Zero outage linked to two deaths and a $100 million fine for predatory sales practices.
Optus has not confirmed the breakdown of roles to be redone, but a source familiar with the matter said the number was around 200, with the potential for some to be redeployed within the company following a consultation process that began on Tuesday.
An Optus spokesperson said the company-wide changes include new hires, leadership changes and “role adjustments”.
“We bring in new expertise where necessary, support transitions, and simplify business areas to encourage faster, more effective decision-making,” the spokesperson said.
“We recognize that some changes will have a significant impact on some of our employees and we are committed to approaching this decision with empathy and respect,” the spokesperson said.
The layoffs will face scrutiny given that they come at a time when the company has been repeatedly criticized for underinvestment and offshoring and has vowed to turn it around.
Optus has been going through 12 months of bruising, including the disastrous Triple Zero outage in September linked to two deaths that are under criminal investigation. Corporate and public sector veteran Kerry Schott’s review of the incident, published in December, identified at least 10 separate errors by Optus engineers and contractor Nokia, describing the failures as “inexcusable”.
Optus chairman John Arthur said at the time that the board had taken action on individual liability, “ranging from financial penalties to termination in appropriate cases”. The board accepted all 21 recommendations in the review, including relocating the onshore operations center to Australia.
Schott’s review stopped short of calling for CEO Stephen Rue to be sacked, noting that the former NBN boss only started at Optus in November 2024 and is leading a five-year transformation programme.
Singtel, the Singapore-based parent company that wholly owns Optus, cut investment in its Australian mobile network by $237 million last year. Telecommunications analyst Paul Budde warned after the outage in September that the failures reflected systemic governance failures rather than isolated technical errors.
Optus’ offshore call center staff repeatedly failed to relay warnings from customers about the Triple Zero outage, which was partly caused by errors in Optus’ outsourced network management team. The telco has promised to reinstate it and hire more Australian call center workers.
This comes after the federal government announced on Tuesday a wholesale review of the laws governing the emergency services network.
Communications Minister Anika Wells told the CommsDay summit in Canberra: “A comprehensive review of Triple Zero laws and regulations is an important step in rebuilding public confidence in the system and ensuring we have the right framework to reduce the risk of a major outage happening again.”
“We must do everything we can to ensure Triple Zero remains reliable, durable and fit for purpose now and into the future.”
A third Senate inquiry hearing on Thursday will examine the deadly Triple Zero outage, with Optus executives – along with executives from parent company Singtel – being grilled at a hearing led by Greens senator Sarah Hanson-Young.
Optus agreed to pay a $100 million fine in November after being sued by the Australian Competition and Consumer Commission for selling products to vulnerable customers they could not afford or use.
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David Swan is the technology editor of The Age and The Sydney Morning Herald. He was previously technology editor of The Australian newspaper.Connect with: X or email.
