Telstra set to axe 2,800 roles by end of 2024
Telstra has announced it could “potentially see up to 2,800 roles removed” by the end of the year.
In an ASX announcement issued on Tuesday morning, the telco’s CEO, Vicki Brady, said the move would be made in a bid to reset its Enterprise business.
Looking to “simplify its operations and improve productivity” and achieve $350 million in cost savings by the end of the 2025 financial year, Brady said the proposed measures would result in the job reductions.
“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 Enterprise.
Brady said the move was necessary to ensure Telstra can continue to “support the ever-increasing growth in data volumes on its networks and deliver improved connectivity for customers across the country”.
“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.”
Macquarie Telecom group executive, Luke Clifton, blasted Telstra’s announcement, calling the decision to axe staff in favour of AI as a “cheap, sinister move”.
“Telstra has never believed in investing in Australian people. It has outsourced staff overseas and now it’s trying to replace them with artificial intelligence,” Clifton told Mumbrella.
“Rather than taking the lead on investing in AI to support staff and create better technologies for customers, the company is making a cheap, sinister move that will worsen its already disgraceful customer service standards.
“Telstra doesn’t believe in its staff or its customers, no wonder both are leaving in droves.”
Mumbrella has contacted Telstra for further comment.
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