Telstra to slash 2,800 jobs as part of simplifying business

Telstra, a leading telecom service provider in Australia, will reduce up to 2,800 jobs from its direct workforce by the end of this year.
Telstra broadbandTelstra, which earlier revealed net profit of $1.0 billion (up 11.5 percent) on revenue of $11.7 billion (up 1.2 percent) during first half of its financial year 2024, is targeting to simplify operations and improve productivity.

Telstra CEO Vicki Brady said in February: “We have achieved result from product simplification and digitisation on customer experience. We have 93 percent of Consumer & Small Business sales on our new digital stack, and overall we have digitised 71 percent of our key service transactions.”

“On digital leadership, we invest in our digital capabilities to help improve customer experience, uplift our productivity, and help industries and businesses to digitise. Telstra is now using AI to improve half of our key processes, including to automatically detect and resolve fixed services faults, and to solve customer issues faster,” Vicki Brady said.

Telstra says it will start consultation on 377 roles would immediately, mainly from areas supporting the products and services to be exited in its enterprise business.

Telstra, which is in the process of executing its T25 strategy, expects to record one-off restructuring costs of A$200 million ($133.36 million) to A$250 million in fiscal 2024 and 2025.

Telstra reiterated its earnings forecast for 2024 and said it expects underlying earnings before interest, taxes, depreciation, and amortization for 2025 between A$8.4 billion and $8.7 billion.

Telstra had first announced a review of its products and services under its enterprise business in February.

It said on Tuesday it had identified a number of actions under the review, which include streamlining its product portfolio and reducing network applications and services products in market by close to two-thirds.

Telstra said it would also reshape some of its internal operations by moving its Global Business Services function into other parts of the business. News Desk