Telstra to axe almost 500 jobs in cost-cutting drive
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Australia’s largest telco Telstra is set to cut almost 500 jobs, the business told staff on Wednesday, marking the first major round of redundancies during chief executive Vicki Brady’s tenure.
The proposed 472 cuts, which come as the company looks to continue to reduce costs, come as part of its ongoing T25 strategy, and just under a year after Brady was appointed as chief executive and managing director.
The job cuts come just under a year after Vicki Brady took the top job. Credit: Arsineh Houspian
“I can confirm we have proposed some changes to continue to reshape our business so that we remain competitive, efficient as well as effective in the way we work,” a spokesperson for Telstra confirmed to this masthead.
“These are critical for us to remain competitive and achieve our customer ambitions.”
Telstra did not quantify the total reduction in roles, however said there is a proposed net loss of 472 jobs, with some new roles to be created. This figure constitutes approximately 1.5 per cent of Telstra’s national 30,000-person workforce. The spokesperson said there would not be reductions to its consumer teams, who serve customers in store, on the phone, or at home. The majority of the proposed cuts will come from the telco’s enterprise business.
“Decisions like this are always difficult. We know and feel the personal impact on our people and their families,” the spokesperson added.
Telstra first outlined its target of up to $500 million in cost savings over three years in 2021, when former CEO Andy Penn outlined the telco’s T25 strategy.
A source close to the matter, who was not authorised to speak publicly, said those that end up leaving Telstra will get access to its redundancy package and range of support services.
NBN outlined plans earlier this year to cut 500 jobs – around 10 per cent of its workforce – by the end of the 2023 financial year to limit costs, amid rising competition from cheaper alternatives, including Elon Musk’s Starlink.
This month Telstra announced a partnership with Starlink, to provide voice and internet plans to rural customers, in a move piled further pressure on NBN’s own Sky Muster service.
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