Saturday, June 15, 2024

Telstra to cut up to 2,800 jobs amid Enterprise business ‘reset’

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Telstra has announced it will cut up to 2,800 job as part of the “reset” of its Enterprise business. 

The company said the majority of the job cuts will occur by the end of 2024, with consultation on 377 of those roles beginning immediately.

The job cuts represent nine percent of Telstra’s 31,000 staff.

The telco said the reduction in its workforce along with other cost reductions will help lower its costs by $350 million by the end of the 2025 financial year.

“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,” Telstra CEO Vicki Brady said.

“As we propose specific changes, we will talk them through with our teams and union representatives first.”.

The company had announced a review of Telstra Enterprise with its half-year financial results in February 2024, which revealed the underperformance of its network applications and services (NAS) portfolio.

Telstra today announced measures to begin the reset of Telstra Enterprise.

This will include reducing the number of NAS products in market by close to two thirds and reducing the cost base of the Telstra Purple tech services business, particularly NAS products.

“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.”

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