Kaz to fire 100 staff?

Summary:Telstra today declined to confirm or deny a report that it was firing up to 100 staff from its troubled IT services division Kaz.

Telstra today declined to confirm or deny a report that it was firing up to 100 staff from its troubled IT services division Kaz.

(Axe Fight by Laurel Fan, CC 2.0)

News Ltd newspapers this morning reported that between 50 and 100 Kaz staff could be sacked, with a decision due this week. The news comes months after Telstra chief executive Sol Trujillo made it clear Kaz was no longer up for sale after a long-running process failed to find a buyer on satisfactory terms.

Telstra spokesperson Martin Barr told ZDNet.com.au that the company stood by earlier comments by another spokesperson, Andrew Butcher, that Telstra "continually reviewed" its operations to ensure it balanced its business with market demands.

Barr declined to comment further or to directly confirm or deny the reported cuts.

Local competition in Kaz's core market for IT services is currently intensifying, with Australian rivals such as Oakton, UXC, ASG and SMS Management and Technology speedily growing, and HP reviving its local operation with the purchase of EDS.

Telstra and Kaz officials have repeatedly declined to make senior officials from the troubled IT services provider available over the past year, although Telstra's group managing director of enterprise and government David Thodey has spoken to the press about Kaz, which sits within his division.

Topics: Telcos, Hewlett-Packard, Outsourcing, Telstra

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