The trend for the public to accessing data digitally rather than from Yellow or White Page is causing a transformation in directory business Sensis, with a big question mark over the future of the printed editions.
Telstra has just sacked 648 employees at its Sensis business as the company relocates 390 backroom and sales roles overseas to Indian or Philippine call centres.
The news puts a question mark over the printing contract, which is with PMP, which prints the Yellow Pages and White Pages directories for Sensis and is currently under contract for the next three years. The seven year agreement signed in 2009 is worth an estimated $50m in revenue to PMP each year.
John Allan, managing director, Sensis says, “Until now we have been operating with an outdated print-based model – this is no longer sustainable for us. As we have made clear in the past, we will continue to produce Yellow and White Pages books to meet the needs of customers and advertisers who rely on the printed directories, but our future is online and mobile where the vast majority of search and directory business takes place."
The contract sees PMP printing a total of 96 metropolitan and regional Yellow Pages and White Pages directories each year. The PMP Moorebank printing plant will carry out the Sensis directories print schedule, as the Chullora plant is set to close on June 30 with 120 job losses.
Allan says, “Already, more than 60 per cent of our customers now are advertising online and in mobile apps, while our White and Yellow Pages digital services received 18.4m visits in January 2013.”
He says, “We need to simplify our operation and invest in areas that make us more efficient, and meet our customers’ growing demand for online and mobile services.”
Allan says, “Sensis needs to change in order to compete effectively, to deliver what our customers want and to achieve our ambition of being Australia’s leading provider of digital marketing services. While these decisions are never easy, they are designed to position the company for future digital growth.”
The key changes under the proposed restructure include the establishment of a new digital Customer Management Centre, improved IT capabilities which Sensis hopes will strengthen its digital innovation and delivery capabilities.
Sensis also plans to restructure the Yellow Pages sales operating model, as it looks to improve marketing and go to market processes.
Sensis has a staff of 3500 and now one in five will lose their job as the company creates new roles to accelerate its transition from a print to a digital focused business.
The changes will change the Sensis business as the company looks to position it for success in the long term.
Allan says, “Right now that means making some tough decisions and I’m acutely aware of the impact on our people.
“Not one of these decisions has been taken lightly and we are working with our staff and the unions to provide further detail of our proposed digital transition to ensure the best support for those affected by the resulting changes,” concludes Allan.
