Telstra to slash 8000 jobs in major overhaul

Lloyd Doyle
June 20, 2018

Telstra will axe one in four of its executive and middle management jobs and consolidate its back office operations as it cuts 8,000 employees and contractors over the next three years. This would equate to roughly a quarter of Telstra's entire workforce.

Under Telstra2022 all Telstra's 1800 consumer and small business plans are going to be "retired, " replaced by 20 core plans sitting on digital platforms. "If we can deliver that, and make this sort of change and improve the simplicity and get rid of the charges that drive customers", he said.

"When I look at a lot of the activity in the business, it's dealing with issues and complications and problems that we've created for customers because of the complexity in the design of the product", he said.

Telstra on Wednesday forecast a fall in earnings for 2019 to between $8.7 billion and $9.4 billion - excluding restructuring costs of about $600 million.

With its rivals, including late-comer TPG, scrambling to attract its customers as the NBN undermines the dominance that Telstra's legacy fixed line networks once gave it, Telstra's market share, revenues and premium pricing are under threat.

The job cuts will see "a reduction in 2-4 layers of management".

Mr Penn said the company had to take action to stay on top in a highly competitive market.


Telstra will set up a $50 million support program to help staff affected by the job cuts with post-employment support, training and coaching. "This means that some roles will no longer be required, some will change and there will also be new ones created", Penn said.

Eliminating the need for one-third of customer service calls within two years and two-thirds by FY22.

Federal Labor frontbencher Richard Marles described Telstra's decision as a "huge shock".

'That is a very significant number of employees - even over that period of time - and this is going to be a very hard day for every Telstra worker, ' Mr Marles told Sky News on Wednesday.

"As technology innovation is increasingly relying on connectivity, the role of telecommunications infrastructure is becoming more important", said Mr Penn.

"We have to do this because I think as an industry we're at a tipping point", Mr Penn told reporters.

The strategy doesn't specifically answer the question of where Telstra's growth might come from but, if it can execute effectively, it could create a better and more effective business and a platform for growth in an exciting 5G environment whose boundaries are yet to be defined.

Other reports by Iphone Fresh

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