Telstra will cut up to 2,800 jobs (about nine per cent of its total workforce) by the end of the year.
Telstra chief executive Vicki Brady made the shock announcement on Tuesday, saying the job cuts were necessary to ensure the company’s productivity.
Most of the cuts will occur by the end of 2024 and will focus on reducing indirect labor and non-labor costs and would save about $350 million by 2025.
“Some of the proposed measures, which require consultation with employees and unions, would result in up to 2,800 job reductions from Telstra’s direct workforce,” Brady said in a statement to investors.
‘(The reductions would be) make the necessary investments to support the increasing growth of data volumes on its network and deliver improved connectivity for customers across the country.
Brady added that Telstra employees will be supported during the changes through company staff and union representatives.
“I appreciate the uncertainty that proposed changes like this may create for our people and we will support them through this change carefully and transparently,” Ms Brady said.
“As we propose specific changes, we will first discuss them with our teams and union representatives.”
Telstra had an estimated workforce of 31,000, according to its latest annual report.
The company has forecast a one-time restructuring cost of between $200 million and $250 million associated with job cuts over the next two years.
The telecoms giant said its underlying earnings – before interest, depreciation, amortization and taxes – in 2025 were forecast between $8.4 billion and $8.7 billion.