It’s a sad day for Telstra employees as the telco has announced it is cutting 2800 jobs or 9 per cent of its workforce.
In its FY25 statement to the market this morning, CEO Vicky Brady said the enterprise business along with other organisational changes would potentially see up to 2,800 roles removed, with the majority of this to occur by the end of calendar year 2024.
In a statement, Brady called these measures “necessary” so the telco can continue to make the investments needed to support the increasing data volumes on its network and deliver improved connectivity across Australia.
The CEO said this will help simplify processes and empower leaders closest to customers to make more decisions. She said Telstra also continues to focus on a range of actions to reduce its non-labour and indirect labour costs.
Read: focus on AI investments.
“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. As we propose specific changes, we will talk them through with our teams and union representatives first,” Brady said.
Consultation on 377 of those roles would begin immediately, mainly from areas supporting the products and services to be exited in the enterprise division.
In addition to starting the reset of Telstra Enterprise, Brady said Telstra will reshape some of its internal operations by moving its Global Business Services function into other parts of the business.
With these actions, Telstra said it expected to achieve $350 million of its T25 cost reduction ambition by the end of FY25.
“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,” Brady said.
“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.”
We will update this story as it develops.
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