Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Falling Dollar Forces Ihug Review

A record fall in the value of the New Zealand dollar is one of the key factors behind cost cutting measures announced by Ihug today.

The company has confirmed it is now reviewing staff numbers in the wake of the dollar's recent slump. Since the start of the year, the embattled New Zealand dollar has plummeted 22 per cent against the greenback.

The dollar crisis has had a big impact on Ihug's operating costs. The company - New Zealand's second largest Internet service provider - buys large amounts of bandwidth and hardware, all in US dollars.

Ihug currently employs more than 350 staff both in New Zealand and Australia. The company has warned it may have to shed around 60 jobs. More details will be passed to staff as review work is completed over the next day or two.

Ihug Director Nick Wood says Ihug will continue to be a leader in providing cheaper, faster Internet access. But he says the falling dollar has forced the company to refocus on core activities.

Mr Wood says Ihug will be offering support and advice to any worker whose job is lost.

"We have held off on restructuring for as long as possible," he says.

"We are a privately owned NZ company and we must run in the black, unlike our bigger foreign owned competitors. In these tough economic times, that means running a tight ship. It is unfortunate but unavoidable. We will naturally do everything we can to assist those affected by the job losses."

Mr Wood says Ihug staff are well trained and frequently in demand from other telecommunications companies and new start-up ventures. He is hopeful many of the staff will quickly find work elsewhere in the industry.

ENDS

For further information please contact:

Greg Ward Media liaison Ihug Phone: 025 387 037 Office: (09) 521 2410 Email: greg.w@ihug.co.nz


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Energy: New Zealand Could Be World’s First Large-scale Producer Of Green Hydrogen

Contact Energy and Meridian Energy are seeking registrations of interest to develop the world’s largest green hydrogen plant. The plant has the potential to earn hundreds of millions in export revenue and help decarbonise economies both here and overseas... More>>


MBIE: 36th America’s Cup Post-event Reports Released

Post-event reporting on the 36th America’s Cup (AC36) has been released today. The reports cover the delivery of the event by Crown, Council and America’s Cup Event Limited, economic impacts for Auckland and New Zealand, and delivery of critical infrastructure... More>>

Fonterra: Farmer Feedback Set To Shape Revised Capital Structure Proposal

With the first phase of Fonterra’s capital structure consultation now complete, the Co-op is drawing up a revised proposal that aims to reflect farmers’ views. A number of changes are being considered to the preferred option initially put forward in the Consultation Booklet in May... More>>




Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>

ALSO: