2degrees to slash 120 jobs as COVID-19 impacts set in

2degrees is proposing to cut 10% of its 1200-person workforce, in response to the evolving COVID-19 crisis.

In a business update, the telecommunications provider outlined the outbreak's impacts on the economy and its business.

2degrees chief executive Mark Aue says staff have been briefed on a range of cost reductions taken to respond to the impact of COVID-19, but advised that whilst agreed measures go a long way, unfortunately more will be required through staffing changes.

The company's response measures include a reduction in capital spend and deferral of non-essential projects, reduced operating costs including a recruitment freeze, renegotiation of supplier rates and vendor costs and an acceleration of cost savings initiatives from 2021. In addition, the company has proposed staff changes that would see a 10% reduction in the company's 1200-person workforce.

Aue says that although 2degrees' people are its biggest asset, "the harsh reality is that we must now take decisive action, reducing staff numbers or the hours worked for some roles."

He says that the company is an essential service provider and more important than ever to customers, but it is not immune from the financial impacts of the crisis.

"We are already seeing revenue impacts, and like all businesses, are in an unprecedented situation with uncertainty on how long it will last," says Aue.

"We're starting those difficult discussions with our people now and out of respect for them won't be providing more detail until we've had time to fully consider their feedback," he says.

"The New Zealand economy is being impacted in unprecedented ways by COVID-19," says Aue.

"We are a resilient business and will continue to invest in our mobile and broadband networks, and ensure our customers are well served by our New Zealand-based care team," he says.

"We owe it to our customers and staff to ensure we weather this storm, so we're making some difficult decisions now to avoid bigger changes later.

New Zealand is currently in the third week of a four-week alert level four lock down, which requires all but essential works to stay home and for Kiwis to avoid travel unless essential. There are currently 1,072 cases of COVID-19 in the country, with 628 people recovered from the virus, and nine deaths.

There are 1,978,769 confirmed cases worldwide, with 470,747 people recovered and 125,196 deaths.

Prime Minister Jacinda Ardern will announce if New Zealand moves out of level four lockdown on 20 April.