Globe reorganizes sales, marketing units

By Lenie Lectura, Business Mirror

Posted at Jul 02 2009 11:24 PM | Updated as of Jul 03 2009 07:24 AM

MANILA - Globe Telecom recently reorganized its sales and marketing team, affecting “30 or so positions,” an official of the country’s second-largest cellular firm said.

Globe corporate and regulatory affairs head Maria Caridad Gonzales told the BusinessMirror in a phone interview that the cellular firm’s president Ernest Cu was on top of the changes recently implemented. “He had been planning this since he got to Globe,” she said.

Cu took over as president and chief executive officer of the Ayala-controlled company in April this year. He replaced Gerardo Ablaza who now helps oversee the Ayala Group’s business interests in the telecommunications and banking sectors.

The company has about 5,000 workforce. Gonzales said less than 20 people employed in Metro Manila were affected by the reorganization, which she prefers to be called as realignment. The remaining 10 former Globe employees used to be assigned in various Globe offices outside of the metropolis.

Globe made all the necessary filings before the labor department, added Gonzales.

“What we did was we integrated our sales group handling consumer wireless and broadband. In so doing, there were duplications, thus, affecting 30 positions. But this was just a small realignment. The objective of which is to have a better goal to market approach,” she said.

Globe, she said, implemented this reorganization not mainly to cut on costs but to boost its sales force handling both products amidst stiff competition from rivals Philippine Long Distance Telephone Co. and Digital Telecommunications’ Sun Cellular.

“Of course there will be cost savings but that is not our objective. We want to have a stronger market approach so consumers can have that one look and feel for Globe so it won’t be confusing our consumer products,” explained the Globe official.

The changes were limited to the company’s sales force. “There’s no second phase to this. There was just [some] realigning [that needed to be done],” she stressed.

Industry observers say Globe needs to shift gears up in order to better compete with rivals. Coming up with more products and service offerings such as the Globe Duo and WiMax may not be enough to cope up with competition especially during tough times when consumer wallet is shrinking. “In other words, they have to deliver and generate more revenues or they will continue to be left behind,” said the sources.

Globe’s revenues from its wireless business grew by only 1 percent to P14 billion as of the first quarter of the year.

The cellular firm registered 25.7 million cellular subscribers at end-March. Despite a 21-percent increase in net subscriber additions from the same period last year, Globe’s average revenue per subscriber declined as a result of continued multi-SIM (subscriber identification module) usage and low usage levels of new subscribers.

Of late, Globe has been experiencing network glitches. The problem, the company claimed, is limited only to the 3G (third-generation) service that affected some parts of Makati, Manila and Pasay.

Irate Globe subscribers complained of difficulty in making calls, sharing load credits and delays in text messaging service.

Globe also relaunched its fully mobile broadband service branded as Globe Broadband Tattoo but some subscribers still complained of slow Internet connection.