“While we are still working through the consultation process, we expect this partnership to impact around 180 roles within our network operations team,” the Spark spokeswoman said.
“Nokia will also be establishing a local network operations centre with around 100 onshore roles available for our people to apply for.”
Asked if staff moving across to Nokia would get the same pay and conditions they enjoyed at the telco, the Spark spokeswoman said she could not comment, citing privacy.
“We have worked with our partner to ensure that the remuneration of roles that have been created through this partnership is market-competitive,” she said.
Spark said at its half-year the result that the partnership with a (then-unnamed) network operations partner would “accelerate AI [artificial intelligence] and automation, deliver greater efficiency, and enable access to global capability and innovation”.
Separate from Infosys deal as $100m cost-saving drive continues
In April, Spark announced an expanded contract with Indian outsourcing giant Infosys.
Spark did not detail the net reduction of roles with its Infosys deal, which was aimed at reducing its IT operating costs.
Infosys, like its peers, has operations in India plus New Zealand and other countries where it runs its outsourcing operations.
Spark is on a drive, previously flagged to the market, to save $80-$100 million in labour and operating costs in its 2025 financial year, ending June 30 – including $50m from cutting around 10% of its workforce, implying around 500 layoffs.
While Spark has not released any financials around its new Infosys contract (or other deals with Microsoft and HP Enterprises), Forsyth Barr analyst Aaron Ibbotson told the Herald: “With this deal in particular, there will be some meaningful staff reductions.”
He added: “What Spark is trying to do is clearly painful for some employees. But they have to introduce a degree of flexibility into their cost structure so when the cost demand picks up, they can scale their partnerships. And when demand falls, they can reduce capacity without having to lay off staff.”
Ibbotson and other analysts criticised Spark for what they saw as only limited progress toward its cost-cutting targets in the first half of its 2025 financial year. The telco said it would pick up the pace in the second half.
Below: Prime Minister Christopher Luxon visits Infosys rival Tata’s Mumbai campus during his March trade mission to India:
Spark shares closed at $2.21 on Friday. The stock is down 47.19% over the past year, which has seen a series of earnings and dividend downgrades.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
