Telecom Lead Asia: Pacnet, a provider of network and technology solutions in Asia Pacific, will cut 30 percent of its workforce.
The reduction in resources will enable Pacnet to lower annual expenses by approximately $30 million.
The company will also divest nonviable businesses. It will also exit commoditized businesses such as the residential internet service and wholesale voice segments.
This will enable the company to focus exclusively on building out high margin value added services offerings. Moreover, Pacnet will streamline the underlying operations to create an operating model that is customized around the most important offerings.
The new strategy is aimed at gaining more market share and entering a new phase of accelerated growth and profitability.
Pacnet will focus exclusively on high margin core businesses, upgrading offerings, streamlining operations, and reducing costs.
These new initiatives will have a transformative impact and position Pacnet to address key objectives and priorities.
Pacnet will focus its expansion efforts on markets with the greatest opportunities and invest in the future through more technology and network upgrades, new data centers, and a comprehensive suite of managed services.
“Our aim is to become the leading provider of network and technology solutions for enterprise and carrier customers in Asia Pacific,” said Carl Grivner, chief executive officer, Pacnet. “We intend to leverage and build on our very strong foundation but we will also make important and necessary changes that will refine our business model and enable Pacnet to enter a new phase of accelerated growth and improved profitability.”
Pacnet will focus exclusively on carrier and enterprise customers. This will translate into greater sales of higher margin business for Pacnet.
It will also leverage existing unrivaled data center capacity and introduce additional managed services for customers. The company will look to deliver “IT as a service” by introducing a range of new value added services such as full data management, virtual hosting, and security products.
The company will expand the capabilities and reach of Pacnet’s network in China.