Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

1,200 jobs cut in a day

Nearly 1,200 people will lose their jobs after a round of sacking announcements but economists warn the job market, while tight, should improve.

Three major Australian companies have announced nearly 1,200 job cuts between them on just one day, as weak earnings force businesses to focus on driving down costs and adapt to changing markets.

Telstra said on Thursday it would cut 648 jobs from its struggling Sensis business - a division that has suffered massive revenue falls as demand for its key White Pages and Yellow Pages directories plummets.

Gas and electricity player Origin Energy announced it will cut an additional 350 jobs, in addition to 500 already flagged, during 2013 as it faces falling profits.

And 200 workers will be sacked from Iluka, a miner of mineral sands used in high-tech metals and paint pigments, after weak market conditions forced a 33 per cent slide in full year profit.

The job cuts drew sympathy from federal Workplace Relations Minister Bill Shorten, who sought to reassure Sensis workers they would find new work.

"The labour market for skilled workers is still reasonably tight," Mr Shorten said.

In a grim day for many workers, liquidators were also appointed to store- fitout business ONE Group Retail Holdings, placing the jobs of 170 people at risk.

Unemployment in Australia is tipped to rise from its current level of 5.4 per cent to around 5.6 per cent during 2013.

In a report released on Thursday, insolvency firm Taylor Woodings said 2012 had been one of the toughest years on record for company collapses and 2013 was expected to remain challenging.

Yet CommSec economist Savanth Sebastian cautioned that high-profile job losses such as the Sensis sackings and a series of cuts at banks and stockbroking firms during 2012 distracted from the underlying strength of the economy.

"It's certainly a mixed picture for the labour market but it is not a substantial weakness," Mr Sebastian said.

"It would surprise most Australians that we added just over 150,000 jobs in 2012."

Mr Sebastian said some turnaround in the labour market was expected in the second half of the year as consumer confidence picked up, boosting spending and demand.

Follow CFO World Australia on Twitter: @CFOworld_AU, or take part in the CFO World conversation on LinkedIn: CFO World.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Bill, CommSec, Origin, Telstra, Yellow Pages
References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: job cuts, Iluka, workplace relations, Origin Energy, Telstra
Latest Blog Posts
Whitepapers
  • The F5 DDoS Protection Reference Architecture part 1 of 3
    Distributed denial of service attacks (DDoS) attempt to make a machine or network resource unavailable to its intended users, with a wave of crippling attacks on enterprises since 2012. This whitepaper offers guidance to security and network architects in designing, deploying, and managing architecture to protect against increasingly sophisticated, application-layer DDoS attacks.
    Learn more »
  • Why you should be re-thinking your approach to data protection
    Organisations of all shapes and sizes need a new approach to data protection that addresses the challenges of data growth, but IT budgets are not keeping pace with the escalating costs of supporting storage requirements. This whitepaper explores how securing and retrieving organisational data will need to be done more efficiently.
    Learn more »
  • The F5 DDoS Protection Reference Architecture part 3 of 3
    This whitepaper is the third in a three-part series on distributed denial of service attacks (DDoS) and multi-tier DDoS protection. This section refers to case studies of different approaches to deploying protection architecture, including an enterprise customer scenario, an FSI customer scenario and an SMB customer scenario. The paper explains how these options should provide the flexibility and needed to combat the modern DDoS threat.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Latest Jobs
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index

Recent comments

Computerworld
ARN
Techworld
CMO