Starhub, one of the “big three” telcos in Singapore made a pretty shocking announcement recently.
They’re going to axe 300 full-time staff from their Singapore workforce.
This, they said, is part of their strategy to increase productivity in their organisation.
Starhub Making Lesser Money Over The Years
For the past 10 quarters, or 2 and a half years, Starhub has been making lesser and lesser money.
And this is partly due to disruptions from new-age companies like Netflix, which offers a cheaper alternative to their cable TV.
In 2016, Starhub said their net profit fell by 8.3% to $341.4 million. And in 2017, it fell by a further 27.1% to $249 million.
Which was why the company had to undergo a restructuring.
Most Of The Affected Positions Are Backend Positions
Starhub currently has 2,500 employees in its workforce. Most of the affected positions will be backend ones that do not have to deal with customers.
With this move, the company can expect up to savings of $210 million over a three-year period.
Starhub CEO said that they had a hard time making this decision.
“We have been extremely fortunate to have many competent people in our team but some positions are not sustainable given the current industry pressures.”
They will continue to invest in new businesses like their cybersecurity joint venture Ensign InfoSecurity.
That and to deliver a better service experience for existing Starhub users.
(Yes, please do that.)
Union Pledges To Work Closely With Starhub To Help Affected Workers
Yes, the unions got do work one hor.
The Singapore Industrial and Services Employees’ Union (SISEU) said they’ll work closely with Starhub to help affected workers get fair treatment and compensation.
They will ensure that the affected employees “have a smooth transition to their next job”.
The SISEU spokesperson said they’ll render assistance like job searching, career coaching and employability training.
A Wake Up Call For S’poreans
Just recently, we wrote about how 20.6% of Singaporeans will lose their current job by 2028.
And while it’s heartening to see that people are concerned enough to view the article, it’s pretty disheartening to know that some people share the view that it’s “the current legislation” fault.
Because by doing that, you’re basically declaring that no matter what you do, there’s nothing that can be done to improve the situation.
And so you stop learning, you stop improving. You stop moving. And that’s bad.
Because while the employment landscape has changed and moved on, some Singaporeans might still be stuck in the past.
Unlike the past, working for big companies today doesn’t mean your ricebowl is iron-clad. Just because you’re on good relations with your boss doesn’t mean you’ll never lose your job.
Because today, even your boss might lose his or her job.
Look closely at what Starhub said: the redundancies are not created by ineffective people, but skills mismatch by what you have and what the company needs.
For example, if you’re still using Microsoft Excel for accounting while others might’ve been using Mind Your Own Business (MYOB), you’re in big trouble.
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But There’s Still a Silver Lining
While Starhub made their “shocking” announcement that demoralises Singaporeans in Singapore, they’ve also revealed one thing.
While old jobs are gone, new jobs will be created.
Notice they said they’ll be investing in their new businesses like InfoSecurity. In other words, new jobs will be created in another field.
A field, by the way, that is in need of talents right now.
Affected by our fear-mongering? Looking to start something? Here’s what you can do: log on to skillsfuture.sg and make use of your $500 credits.
Or watch our video (it’s sponsored by Workforce Singapore):
Because like Green Day once said, “It’s time to wake up liao. September has ended.” #SorryOldJoke #ButCannotResist
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