About 2,800 jobs will be cut at Australia’s largest telecommunication company by market share. Telstra, which operates telecommunications networks, and markets related products and services, is looking to stay competitive. Therefore, it seeks to focus on supporting growth across its business. The job cuts will help keep the business sustainable and efficient in the long run.
The maximum impact of these layoffs would be on the employees of the enterprise unit, responsible for providing connectivity to Australia’s biggest organisations. As per media reports, many will be affected across departments and 15 per cent of executive roles may be done away with too.
The telecom company wishes to invest in enhancing its infrastructure, services and technology to be able to deliver better services to its customers, as conveyed by Vicki Brady, CEO, Telstra, The job cuts are expected to be implemented by the end of 2024 and are expected to result in cost savings to the tune of $350 million. The impacted employees will be provided severance along with relevant support through the transition for six months.
The company has been unable to make profits as expected due to certain departments or units not performing as well as expected. Inflation and rising cost of energy have only added to the company’s woes.
This is the first time jobs are being cut since Brady was appointed CEO in 2022. Before her, Andy Penn, CEO, Telstra in 2021, had cut about 2000 jobs as part of a cost-cutting exercise.
