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Sky TV axes 170 local staff as roles offshored, says move will improve support

Author
Chris Keall, NZ Herald,
Publish Date
Wed, 29 Mar 2023, 11:06am
Sky TV chief executive Sophie Moloney. Photo / Dean Purcell.
Sky TV chief executive Sophie Moloney. Photo / Dean Purcell.

Sky TV axes 170 local staff as roles offshored, says move will improve support

Author
Chris Keall, NZ Herald,
Publish Date
Wed, 29 Mar 2023, 11:06am

Sky TV has confirmed around 170 local roles will be axed.

The broadcaster earlier revealed a restructure could cull 90 roles in its technology and content operations teams and around 80 in customer care.

Those cuts were confirmed today as Sky revealed an outsourcing partnership with Probe CX Group - which specialises in Manila-based call centres - and Indian outsourcing giant Tata.

Sky says the restructure will create 200 new roles in the Philippines for its helpdesk operation, and that 100 support roles (from the former 180) will be retained in NZ to deal with more complex queries.

The restructure involves $6 million in one-off costs but from 2024 will save the company $6m per year, Sky says.

The company is just kicking off its first major hardware upgrade in a decade with the launch of its new Sky Box and Sky Pod.

About 30,000 Vodafone TV customers are being migrated to the Sky Pod, while 517,000 users of the Sky decoder are in line for any upgrade to the Sky Box.

Is this the worst possible time to cut local support staff? Not according to Sky chief executive Sophie Moloney, who earlier told the Herald that the restructure was triggered because of the new hardware. The company knew it needed more hands on deck for the rollout and restructuring was the way to achieve it.

Sky already worked with Probe CX locally, allowing it to fast-track the process, which was first announced on February 21.

“We’ve already done deep reviews and due diligence,” Moloney says.

The Sky boss said the changes boosted total support staff from 180 to 300.

“We’ll be around 700 permanent employees once the changes are implemented,” Moloney said.

The changes are due to be completed by June 30.

Sky’s restructure follows a move by accounting software provider MYOB to cut “more than 80″ local positions as some support roles were sent offshor, and Wellington-based Xero’s move to lay off 800 staff, or 15 per cent of its global workforce, with further cuts to come in June.

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