It’s been a quiet period for Packet One Networks (Malaysia) Sdn Bhd (P1) of late. That all changed when an anonymous source who was working for the company, tipped PC.com that around 100 workers were laid off just this week. Currently, we cannot confirm which departments were affected.
What would all this imply for P1, especially now since it was awarded the 4G LTE license in December 2012.
This surprising turn of events is in direct contrast to the other reports of how well P1 is performing. Based on several news stories that came out last year in the papers and on the web, all of them mentioned P1 as being the major contributor (RM82 million (mn) in the fourth quarter of 2012) to Green Packet Bhd’s (GP, the holding group of P1) revenue. In fact, it registered a positive EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) of RM7.1mn for the same quarter. So what is happening here?
Having considered so many possibilities that could have taken place, PC.com decided to snoop around for more information. At press time, many high level executives (Michael Lai, CEO of P1 and CC Puan, Managing Director and CEO of GP no less) could not be reached for a statement. While the corporate communications teams for P1 and GP were more than happy to help, they both could not reveal, confirm or deny anything.
GP has since released a statement to PC.com:
“P1 is implementing a business transformation plan to strengthen the company. This exercise, slated to be completed by end-March, will improve the organisation’s productivity, efficiency and cost structure. We believe the business transformation will also enable us to compete more effectively in a competitive business environment, first of all, by ensuring that we continue to offer better value at affordable prices.
As a result of this business transformation, we did streamline our organization structure making some jobs redundant. Regrettably, some people had to leave us. It was a very hard thing for the company to do as we have a tight-knit, people-first culture. The decision was not taken lightly. It was the right thing to do and it wasn’t easy – we are taking proactive steps to ensure we serve our growing subscriber base well, achieve new financial milestones, and to secure our vision of becoming a top four telcos.”
PC.com is in contact with both P1 and GP and will bring you a more comprehensive story soon. – Additional reporting by Victor Yap.