Orcon lays off 23 staff
broadband telecommunications voip, posted: 5-May-2009 13:37
Yesterday, I got an email saying some of Orcon's prices "simply aren't sustainable", meaning the excess data charge doubled from $1 per GB to $2, unless you took up the $8/month for 5GB additional traffic offer.
Today, I see that Orcon is cutting staff - 23 employees means a 16 per cent reduction in staff numbers.
Last year, the ISP, a state-owned enterprise that's part of Kordia lost almost $3.6 million, so I guess this was to be expected, but how does this fit with Orcon buying webhoster iServe?
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Today, I see that Orcon is cutting staff - 23 employees means a 16 per cent reduction in staff numbers.
Last year, the ISP, a state-owned enterprise that's part of Kordia lost almost $3.6 million, so I guess this was to be expected, but how does this fit with Orcon buying webhoster iServe?
Media statement
5 May 2009
Statement from
Scott Bartlett
CEO, Orcon Internet Limited
Although on target to meet current year profit objectives, Orcon anticipates a more challenging year ahead.
The company has therefore revised its growth targets for the next period and as a consequence will also be reducing the business cost structure.
Orcon is today entering into consultation with employees across the company to reduce staff levels by approximately 23 positions (of a total of 144), with numbers subject to change as a result of consultation.
The current proposal involves staff across all levels and divisions of the business.
Orcon is introducing several measures to assist any affected staff find new jobs. Measures include:
- working closely with employment agencies to ascertain what levels of vacancies exist in similar fields;
- allowing staff time off to attend interviews during their redundancy notice period, and
- access to employment assistance programmes and financial advice via WINZ.
Orcon operates in a fast moving industry. Restructuring the company to meet market conditions and balance risk is a natural part of business.
Because the consultation process is now underway, no further comment will be made by Orcon.
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Comment by anon, on 6-May-2009 15:09
Most companies have an operating budget and a capital budget. I'd say Orcon have purchased iServe from their capital budget as part of their ongoing expansion of their network and services.
From Bartlett's memo, it looks as though they've simply taken a look at the current scenario in New Zealand telecommunications industry and realised that they needed to restructure their staffing accordingly to see them through the recession.
It's not something out of the ordinary to do in these times. Indeed Vodafone, Telecom and Telstraclear have all had heavier staffing cuts within the past 12 months ... it's just that Orcon have delayed their cuts to the extent that most of us have forgotten about the other companies and their redundancies.