Telstra to axe 8000 jobs over four years

20 Juin, 2018, 11:12 | Auteur: Auguste Feret
  • Telstra CEO Andy Penn made the announcement this morning

"In the future our workforce will be smaller, knowledge-based one with a structure and way of working that is agile enough to deal with rapid change", Mr Penn said.

Mr Penn said while roles would no longer be required, he was hopeful new positions might be created.

"We understand the impact this will have on our employees and once we make decisions on specific changes, we are committed to talking to impacted staff first and ensuring we support them through this period".

Telstra's future post-NBN will be heavily reliant on its ability to maintain its leadership in mobile telecommunications and transfer its dominance into the 5G, "internet-of-things, " environment looming within the time-horizon of the "Telstra2022" strategy.

In May, Telstra warned that its 2017/18 earnings will likely be at the bottom of its guidance range of $10.1 billion to $10.6 billion, blaming increasing competition in mobile and fixed broadband, and rising costs from the national broadband network.

Migrating all consumer and small business products and plans and 50% of enterprise customers to completely new technology stacks within three years and leaving the legacy behind.

Part of its new strategy will see it create a wholly-owned standalone infrastructure business unit from July 1.

The cuts will have a strong focus on management and executive-type roles initially, with no bias shown toward onshore and offshore jobs or regional and metro roles.

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A "radical transformation" of customer plans and pricing is also on the cards, as is the "monetisation" of $2 billion in assets over the next two years "to strengthen the balance sheet".

As reported by Business Insider, the overhaul will save the business a billion dollars.

Telstra has a range of businesses including fixed broadband, mobile, data and IP, network application and services, digital media and worldwide. Its services will be sold to Telstra, wholesale customers and NBN Co.

"The rate and pace of change in our industry is increasingly driven by technological innovation and competition", he said.

In an earlier statement, Mr Penn said the strategy would fundamentally change the nature of telecommunication products and services in Australia.

As an infrastructure play InfraCo would be more highly valued by infrastructure investors than by Telstra investors today.

Telstra, Australia's former telecommunications monopoly, is also planning to split its infrastructure operations, which include data centers and broadband cables, into a separate unit and will drastically slim down the number of products it offers customers.

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