Leaked Telecom memo: confirming layoff rumours? What you think?

Forums › Spark New Zealand › Leaked Telecom memo: confirming layoff rumours? What you think?

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old3eyes

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Reply # 768407 24-Feb-2013 09:26

jamesrobert: 12 months ago my family had 3 Telecom accounts - internet and phone.
We now have none - 2 with NOW, 1 with Vodafone.
I take some of the blame.....

If you had three accounts then you set it up wrong. I have one account that consists of 2 fone lines . 1 Auckland, 1 Tauranga, broadband at both and 2 cell fones. All on one account.

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Old3eyes

sbiddle

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Reply # 768433 24-Feb-2013 11:04

mattwnz:
gzt: Um.. because of the stock split in 2011?

No offence, but I really wish you would do a minimum of research before posting matt.

Do you mean the chorus split, or their was a share split? I don't recall there being any share split in 2011.Chorus was only worth about 1/4 of what telecom is worth, so it was about a 1/5 split anyway. Telecoms market cap is 4 times that of chorus, so it didn't cause a big drop in the share value, when it was split off, and the shareprice has recovered since. I have been following telecoms share price quite a bit since regulation was announced. There have been 2 main noticeable things that have caused the value to change since regulation, the other was the yellow pages sale where there was a share buyback to distribute the profits to the shareholder. I recall that that increased the share price as the shares were purchased back off investors so there were less total shares out there.
So now shareholders also have chorus shares, so the combined value of telecom + chorus shares is quite a bit more than it was when they just owned telecom shares prior to the split. Although those chorus shares are very volatile, as they jump up and down in value, and think they are about the same value now as they were when they were first issued. Investors though have had dividends, and dividends are probably the main reason why people have telecom shares, as it has quite good returns relative to the share price.

The Telecom share price was $2.525 on the 22nd Nov 2011. On the 23rd post split Telecom opened at $1.937 and Chorus at $2.94. Telecom shareholders received one Chorus share for every five Telecom shares they had.

Cymro

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Reply # 768441 24-Feb-2013 11:19

DonGould:
Telecom could be doing a bunch of things to improve BB earnings but they're not.

Such as?

samdouglas

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Reply # 770119 25-Feb-2013 21:28

One person supports this post

I worked at Telecom for 4-5 years and this has been on the cards for a while.
Most of the people I know still there think its about time - There are too many managers who add very little value, too many people building up little fiefdoms of influence and running their own little silos.
They could cut half the the analysts and nothing would change.

Telecom is just too big for its boots - it still thinks of itself as a big government owned enterprise and has never really come to terms with the fact it's now in a much more competitive environment and it has to do things more efficiently with less money.

Saying that - There are some fantastic guys there - like Chris Quinn - who really get it. I think it's gonna be guys like that's time to shine now. Clearing out the dead wood could be the best thing theyve ever done.

Without Chorus there to bankroll the big expensive projects theyre going to have to be more sensible with the little money they have to play with - and it might finally force them to get rid of the legacy systems that have hamstrung them for so many years now.

old3eyes

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Reply # 770260 26-Feb-2013 08:44

samdouglas: I worked at Telecom for 4-5 years and this has been on the cards for a while.
Most of the people I know still there think its about time - There are too many managers who add very little value, too many people building up little fiefdoms of influence and running their own little silos.
They could cut half the the analysts and nothing would change.

Telecom is just too big for its boots - it still thinks of itself as a big government owned enterprise and has never really come to terms with the fact it's now in a much more competitive environment and it has to do things more efficiently with less money.

Saying that - There are some fantastic guys there - like Chris Quinn - who really get it. I think it's gonna be guys like that's time to shine now. Clearing out the dead wood could be the best thing theyve ever done.

Without Chorus there to bankroll the big expensive projects theyre going to have to be more sensible with the little money they have to play with - and it might finally force them to get rid of the legacy systems that have hamstrung them for so many years now.

I suspect the deadwood you talk about will be the tech support groups again.. They always seem to be in the firing line when there is a restructure or was when i worked there..

Regards,

Old3eyes

Bung

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Reply # 770263 26-Feb-2013 08:57

The rhetoric is the same every year, this time for a change it's not just before Christmas.

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