29 Mar 2023

NZ staff axed as Sky TV outsources jobs to Philippines, India

1:57 pm on 29 March 2023
Sky headquarters in Mt Wellington.

The customer support and technical support divisions of Sky TV are being restructured. Photo: RNZ / Dan Cook

Sky Television has confirmed about 170 jobs will be axed in a restructuring of customer support and technical operations.

It has confirmed plans disclosed last month to replace 80 jobs in New Zealand with 200 in the Philippines to cut costs and increase its capacity to handle day-to-day subscriber inquiries. About 100 jobs will be retained locally to cope with more complex issues.

Another 90 jobs will be cut from the technology and content divisions and outsourced to Indian firm Tata Consultancy Services.

Chief executive Sophie Moloney said the changes were needed to improve performance and finances.

"The changes will enable Sky to simplify and enhance our operations, grow our Contact Centre team to better meet the needs of customers, and access relevant specialist expertise in key areas.

"Partnering with proven international providers gives us better access to the right technology, capacity and capability in a scalable and cost-effective way."

The restructuring will cost the company $6 million in immediate one-off costs, but was estimated to give longer term annual savings of $6m.

Moloney said Sky would assist those made redundant to find new jobs through job fairs and other means.

Sky TV has already forecast other cost savings of up to $35m in the current financial year, with further plans to save through cutting programming costs.

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