A total of 300 StarHub employees will be out of jobs after the telco giant announced its restructuring plans on October 3.

Despite an initial one-off restructuring cost of S$25 million, the overall "transformation plan" is expected to save the company S$210 million from 2019 to 2021.

StarHub stated that the affected employees were primarily in non-customer facing positions.

Retrenched employees will be offered help to find new jobs

It will work with various government agencies and the NTUC's Employment and Employability Institute, among others, to help the laid-off employees find new jobs.

Counselling services such as coaching and skills upgrading will also be offered.

Online reactions were mixed, with some expressing sympathy for the retrenched employees, while others gave their own take on the move:

Recent developments

The move comes after StarHub recorded declining profits for two years in a row.

Its full year net profit in 2015 stood at S$372.3 million. In 2016, this fell to S$341.4 million. 2017 saw another decrease, down to S$249 million.

New entertainment streaming services may also have led to increased competition for viewers. Netflix made its debut in Singapore in 2016.

StarHub also faced a delay in securing the rights to broadcast UEFA Champions League and Europa League football matches in Singapore.

It only announced that they were able to broadcast the matches in Singapore on Sept. 30, after the Champions League competition had already kicked off on Sept. 18.

New direction for the company

What's next for StarHub?

As part of the "strategic transformation plan" to adapt to the changing media landscape, StarHub will invest in new businesses and technology such as digital customer service initiatives, wireless and fibre services.

In Aug. 2018, StarHub announced that it was teaming up with Temasek subsidiary Leone Investments to form a cybersecurity joint venture, Ensign InfoSecurity.

It may also hire new employees for positions in customer care and cybersecurity.

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Explaining the change in direction, StarHub's Chief Executive Peter Kaliaropoulos said the company faced "intense competitive ferocity" in the market, leading to a greater need for efficiency. He added:

"Technological innovation and competition are redefining how we deliver services to our customers and we at StarHub need to transform our operating model, otherwise we will face greater risks in the future."

The immediate effects of the cuts were seen when StarHub shares rose in morning trade on October 4.

Top image from CapitaLand.