Australian telco giant Telstra to slash up to 2,800 jobs to cut costs
Sign up now: Get ST's newsletters delivered to your inbox
Telecoms firms around the world are confronting seismic industry changes, including the rise of AI, as traditional offerings such as landline phones become obsolete.
PHOTO: REUTERS
Follow topic:
Sydney – Leading Australian telecommunications company Telstra said on May 21 it would cut up to 2,800 jobs, or 9 per cent of its workforce, as part of its proposed measures to simplify operations and reduce costs.
Chief executive Vicki Brady said the job cuts would save the company around A$350 million (S$314 million), setting it up to better deal with “ongoing inflationary and cost pressures”.
Telecoms firms around the world are confronting seismic industry changes, grappling with the rise of artificial intelligence (AI) as traditional offerings such as landline phones become obsolete.
“Our industry and the world we are operating in is fast changing,” Ms Brady told reporters. “We have new and different competitors. We have rapid advances in technology. Our customer needs continue to evolve.”
Earlier in 2024, Telstra, which employs some 30,000 people, announced plans to scale up its use of AI tools in customer service.
The company expects to record one-off restructuring costs of A$200 million to A$250 million in fiscal years 2024 and 2025.
Telstra reiterated its earnings forecast for 2024 and said it expects underlying earnings before interest, taxes, depreciation and amortisation for 2025 of between A$8.4 billion and A$8.7 billion.
Telstra had first announced a review of its products and services under its enterprise business in February.
It said on May 21 it had identified under the review a number of actions, which include streamlining its product portfolio and reducing network applications and services products in market by close to two-thirds.
Shares of the company fell as much as 2.7 per cent to A$3.57 on May 21 and posted their biggest intra-day drop in more than three months. REUTERS, AFP
