The four-fold turnaround plan aims to reduce management layers, refocus on being the "leading challenger" to maximize market share, cost reduction through investment in automation via the Web or through speech technology, and slashing red tape by "reducing meetings; eradicating unnecessary forms and approvals; and re-empowering managers to operate within their quarterly budgets for [operating expenditure] and headcount".

O'Sullivan also signalled more outsourcing in a "few areas where Optus adds little differentiation and we can save considerable cost".

"We have existing customer service functions in India, which are working well and we plan to increase these," he wrote.

To minimize the number of redundancies, Optus has also reviewed its procurement strategy and areas of "discretionary expenditure", like travel and entertainment, to limit costs.

A briefing on the turnaround plan will be given to the senior management group on Friday March 24.