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Telstra to cut thousands of jobs in business ‘reset’

Telstra job cuts

Source: Network Ten

Telco giant Telstra plans to cut up to 2800 jobs in a move it says will help save the company $350 million.

The potential job cuts announced on Tuesday amount to about 9 per cent of the company’s workforce, with most of the axed roles to go by the end of the year.

Chief executive Vicki Brady said the changes would ensure Telstra could continue to invest in supporting the ever-increasing growth in data volumes on its networks.

“Some of the proposed measures, which require consultation with employees and unions, would result in up to 2800 job reductions from Telstra’s direct workforce,” she said.

“Telstra’s ongoing investment in infrastructure, technology, innovation and service for our customers drives growth and underpins Australia’s digital economy, contributing to the prosperity of the nation.”

Brady said the telco anticipated a “restructuring charge” of $200 million to $250 million, which would cover the redundancy costs.

Elsewhere, Treasurer Jim Chalmers said the government would seek advice about Telstra’s plans.

“I think this is a very distressing day for a lot of people who’ve received this bad news today from Telstra and we’re thinking of all of the families who are impacted by these big job cuts at a major Australian employer,” he said.

“We need to make sure that the services don’t suffer as a consequence of these changes and we will be seeking advice from the [Australian Competition and Consumer Commission] about some of the claims that Telstra is making about their new pricing strategy, and the role of the NBN.”

Telstra said talks with workers and unions on initial cuts to nearly 400 jobs would start immediately, mainly from a “reset” of the telco’s business-to-business enterprise division.

It will also “reshape some of its internal operations” by shifting staff from its global business services into other parts of the company.

The announcement came within “an evolving competitive landscape, rapid advances in technology, changing customer needs and ongoing inflationary pressures”, Telstra said.

Brady flagged potential redundancies in February when she revealed the telco had achieved about $105 million, or 20 per cent, of the savings outlined in its long-term strategy.

The job cuts, combined with reductions in other costs, were expected to save the company $350 million by the end of the 2025 financial year.

The one-off costs of the restructure were predicted to be worth up to $250 million.

The Communications Workers Union said the announcement came out of the blue and thousands of workers had woken to the news that their jobs were at risk.

“There are going to be thousands of workers and their families terrified today about what this means for them and their future,” national assistant secretary James Perkins said.

“You can’t slash thousands of jobs without seriously impacting the delivery of services across the country.”

Telstra reported an increase in half-yearly income and profits in February on the back of strong growth in its mobiles business.

-with AAP

Topics: Telstra
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