Wednesday, 18 July 2018

Telstra wields the redundancy axe as it streamlines its operations down under

By Chris Kelly, Total Telecom
Friday 22 June 18

Australia's biggest telco is to make one in four of its executives and middle managers redundant, as it embarks on a radical restructuring plan

Telstra has announced that it will make 8,000 of its staff redundant in a bid to boost efficiency in its operations in Australia and New Zealand. Telstra's CEO, Andrew Penn, said that the company had reached "…

Telstra has announced that it will make 8,000 of its staff redundant in a bid to boost efficiency in its operations in Australia and New Zealand.

Telstra's CEO, Andrew Penn, said that the company had reached "a tipping point where [the company] must act more boldly" to secure its future.   

"A consequence of the plan is an expected net reduction in employee and contractor numbers of 8,000, including removing one in four executive and middle management roles to flatten the structure.

“We are creating a new Telstra that is able to continue to lead the market. In the future our workforce will be a smaller, knowledge-based one with a structure and way of working that is agile enough to deal with rapid change. This means that some roles will no longer be required, some will change and there will also be new ones created,” Mr Penn said.

“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,” he added.

Telstra has 17.6 million mobile subscribers and 8.6 million fixed line broadband customers across Australasia.

Earlier this year, Telstra reported that it was embarking on a $600 million restructuring plan that would radically redefine the company's organisational structure and streamline its operations. The company has also pledged to spend between $3.9 billion and $4.4 billion in capital expenditure projects over the course of this year.

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry