While millions were counting the cost of the Optus outage, the company’s smirking CEO fronted the media. What she did next cost her badly. Smirking and laughing while taking a dig at a devastated small business owner was likely not the response Australians expected from the boss of Optus on the day its network collapsed. But that’s precisely what Chief Executive Officer Kelly Bayer Rosmarin did, marking the beginning of the end of her reign at the country’s second-largest telecommunications company.
Shortly after 4 am on Wednesday, 9 November, the Optus network collapsed and left more than 10 million Australians without telephone and internet access, with the devastating consequences stretching to train services, banks, and even triple-0 services. It was two-and-a-half hours before the telco finally issued a public statement at 6.30 am acknowledging the problem, with only scarce updates provided after that. Some 13 hours on from the outage, almost all customers had their services restored, and Ms. Bayer Rosmarin emerged for the first time that day, hastily beginning an apology tour via multiple media outlets.
It was during one of those attempts at redemption that one expert believes she sealed her fate, finally announcing today her immediate resignation. But there were plenty more jaw-dropping reasons for the former CBA executive to leave over the following days.
In a moment when Ms. Bayer Rosmarin should’ve been contrite, reassuring, and resolute, the Optus boss was defensive, dismissive, and even demeaning. A severe “low point” for the Optus chief was when she appeared on a popular morning talk show and was asked about the plight of a small business owner who had suffered significant losses due to the outage. Instead of expressing empathy or responsibility, she let out a mocking laugh, suggesting that the business owner should have had a backup plan.
This reaction was met with immediate backlash from both the public and the business community. Australians, already frustrated by the network outage, were appalled at her lack of empathy for those who had suffered losses. Small business owners, in particular, felt that her response was callous and out of touch with the realities of running a business during such a crisis.
Ms. Bayer Rosmarin’s attempt at damage control only made matters worse. Her subsequent apologies came across as insincere and forced, further eroding trust in her leadership. Many saw her as trying to save face rather than genuinely addressing the concerns of customers and businesses affected by the outage.
As the days went by, it became clear that Ms. Bayer Rosmarin’s position was untenable. The outrage continued to grow on social media, and prominent figures in the telecommunications industry publicly criticized her handling of the crisis. The Optus board faced increasing pressure to take action, and on November 15, Ms. Bayer Rosmarin announced her resignation as CEO of Optus.
While her resignation may have been inevitable given the magnitude of the crisis and her mishandling of it, there were other factors at play. Ms. Bayer Rosmarin had been at the helm of Optus for just over two years, and her tenure had been marked by controversies and challenges. The network outage was the final straw, but it was not the only reason for her departure.
Under her leadership, Optus had faced growing competition in the telecommunications market, and the company’s profitability had been under pressure. The rollout of 5G services had been delayed, and customer satisfaction had declined. Her management style had also been a subject of criticism, with some employees describing her as autocratic and disconnected from the workforce.
In the wake of her resignation, Optus faces the challenging task of rebuilding trust with its customers and repairing its reputation. The incoming CEO will have to navigate these troubled waters and steer the company toward a more stable and customer-focused future.
In conclusion, the recent Optus network outage and the CEO’s mishandling of the crisis led to her resignation. Her lack of empathy and inappropriate response to the plight of affected individuals and businesses contributed to her downfall. The incident serves as a cautionary tale for leaders in times of crisis, highlighting the importance of empathy, transparency, and effective communication.
