Optus denies plans to slash 1,000 jobs ‘right now’ to fund EPL rights

Optus has denied it plans to cut 1,000 jobs “right now” but is reviewing its operations as the telco plots its much anticipated coverage of the English Premier League.

An Optus spokeswoman said on Tuesday the group “continually reviews its operations to ensure it has the right organisational structure” following a report in the Australian that it might cut its workforce by 10%, or 1,000 jobs.

“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.

“Although our priority is to always communicate the details of any changes directly with employees first, Optus does not have plans to make 1,000 roles redundant,” the spokeswoman said in a statement.

Citing internal documents, the Australian reported that Optus, which is owned by Singapore Telecommunications, was considering cutting its workforce as part of a wide-ranging cost-cutting exercise under chief executive Allen Lew.

The newspaper reported that Optus needed savings to help fund the group’s $189m three-year deal for the exclusive Australian broadcast and digital rights to the EPL.

On Tuesday the Communications Workers Union national secretary, Greg Rayner, criticised the reported plan to cut jobs.

“Optus is rushing to cover themselves and pass this off as something other than massive jobs cuts for Australian workers,” Rayner said.

“We are talking about almost 10% of Optus’s total workforce. These are serious numbers. Thousands of staff will be out of the job, and thousands of families will suffer,” he added.

In November when Optus secured the EPL rights, Lew said the deal was “another significant step” in its strategy to become a mobile-led multimedia company.

Since than, Optus has been tightlipped about its coverage plans, but the clock is ticking with the first season of its coverage set to kick off in August.

“I don’t have any information or timing indications to share at this stage,” an Optus spokeswoman said.

There has been speculation that Optus could show the games live via a direct-to-consumer subscription streaming service, and on catch-up via a website or app with discounts to Optus customers.

Optus’s EPL move shocked the media industry and local football fans as pay-television company Foxtel had held the local broadcast rights for 18 years.

Foxtel – which is 50-50 owned by Telstra and media group News Corp - is now focusing its attention on the NRL and AFL.

Optus last month booked a 9.1% rise in third-quarter net profit to $227m from the same period a year earlier, thanks to new mobile customer signings and further network improvements.