Yahoo Lifestyle Telstra to axe up to 2,800 jobs in huge restructure plan
The move is designed to 'simplify operations and improve productivity'.
Telstra has announced plans to axe up to 2,800 jobs. The telecommunications company said the job losses are a "necessary" part of ensuring it could keep pace with its mission to "simplify operations and improve productivity".
The move will require consultation with employees as well as unions and will affect Telstra's "direct workforce". Consultation will begin on 377 of those roles immediately, mainly in areas supporting the products and services in its enterprise business.
Telstra CEO Vicki Brady explained the job losses would help the company make the investments "needed to support the ever-increasing growth in data volumes on its networks" and "deliver improved connectivity for customers across the country".
Are you affected by this move? Email stew.perrie@yahooinc.com
“I appreciate the uncertainty proposed changes like this can create for our people, and we will support them through this change with care and transparency,” Brady said in a statement.
"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.
"This is occurring within a dynamic environment, with an evolving competitive landscape, rapid advances in technology, changing customer needs, and the ongoing inflationary pressures facing all businesses."
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The company employs 31,000 people, so cutting up to 2,800 would be a little more than 9 per cent of its workforce.
The redundancies are expected to be completed by the end of 2024 and it will "reshape" some of the company's internal operations.
Earlier this year, Brady foreshadowed job cuts could be coming after Telstra unveiled its half-year earnings. She revealed the company had only reached $105 million of the $500 million savings target outlined in its T25 plan.
In today's announcement about job losses, the company boss said layoffs should save Telstra up to $250 million.
“This will help simplify processes and empower leaders closest to customers to make more decisions," she said.
“Our strategy beyond T25 will build on the momentum created over recent years and help set the organisation up for success through to 2030.”
Decision will leave employees 'terrified'
The Communication Workers Union said the announcement came out of the blue and thousands of workers had woken up to the news 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 futures,” national assistant secretary James Perkins said.
“You can’t slash thousands of jobs without seriously impacting the delivery of services across the country.”
Luke Clifton, group executive from Macquarie Telecom believes Telstra will be using AI to pick up the slack when the thousands of workers leave.
"It has outsourced staff overseas and now it’s trying to replace them with artificial intelligence," Clifton said.
"Rather than taking the lead on investing in AI to support staff and create better technologies for customers, the company is making a cheap, sinister move that will worsen its already disgraceful customer service standards.
“Telstra doesn’t believe in its staff or its customers, no wonder both are leaving in droves.”
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