Telstra reveals plan to cut 2800 jobs to save $350 million, ‘reset’ business

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

May 21, 2024, updated May 21, 2024
Telstra has revealed plans to axe 2800 jobs to save $34m. (Photo: ABC)

Telstra has revealed plans to axe 2800 jobs to save $34m. (Photo: ABC)

The potential job cuts announced on Tuesday amount to about nine 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 were needed to 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 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.”

Talks with workers and unions on initial cuts to nearly 400 jobs would start immediately, the company said, 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.

Ms 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.

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

The Communication Workers Union said the announcement came out of the blue and thousands of workers had woken up 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.

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