News: Axiata-Telenor merger to create more jobs

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Axiata-Telenor merger to create more jobs

While the merger will remove the duplication in terms of infrastructure and capital expenditure, it is expected to create more jobs when it comes to marketing and servicing a larger clientele base of almost 22 million, just in Malaysia alone.
Axiata-Telenor merger to create more jobs

The proposed merger between Malaysian telecommunication conglomerate Axiata Group Bhd and Norwegian multinational telecommunications company Telenor ASA will see the creation of more jobs and opportunities. While the merger will remove the duplication in terms of infrastructure and capital expenditure, it is expected to create more jobs when it comes to marketing and servicing a larger clientele base of almost 22 million, just in Malaysia alone, according to an Axiata spokesman.

The planned merger will not result in any retrenchment and neither will the success of the merger rely on the reduction of jobs, added the spokesperson. The people plan includes the retraining and reskilling of employees to new areas. 

The jobs will also be created due to new areas of growth such as home broadband, enterprise, solutions and the Regional Innovation Centre. The spokesman said that the company does not believe in benefiting from the merger at the expense of its employees and if there would be any plans for manpower reduction, it would only be on a voluntary basis.

Earlier this month, Axiata said the newly merged entity (MergedCo) would create a global champion with proforma revenue of more than RM50 Bn.

MergedCo will invest some RM100 Mn annually into the innovation centre for areas surrounding the Internet of Things (IoT), artificial intelligence, robotics, and 5G solutions. The MergedCo will have controlled operating subsidiaries in nine countries with a combined total population of more than one billion people and 300 million customers. The chairman will be nominated by Axiata and will be a Malaysian as will be the CEO.

While historically mergers have led to substantial churn in the workforce, it will be interesting to see how by creating one of Asia’s leading telecom players, the duo is able to combine scale and competence, unlock considerable synergies and create more jobs.

Topics: #Jobs, #MergersAndAcquisitions, Employee Relations

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