Published: Wed, June 20, 2018
Economy | By

Telstra axes 8,000 jobs as company moves to 'cut costs'

Telstra axes 8,000 jobs as company moves to 'cut costs'

The announcement on Wednesday morning is part of raft of structural changes unveiled at the telco that have sent Telstra shares down more than seven per cent in early trade on the ASX, with the stock touching $2.70 at 1024 AEST - it's lowest level since 2011.

"We are creating a new Telstra that is able to continue to lead the market".

"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.

'This means that some roles will no longer be acquired, some will change and there will also be new ones created'.

Beneath it is an attempt to leverage the $3 billion investment in digitising its platforms it has been making to fundamentally change its retail offer, the way it interacts with its customers and the way it is itself structured.

Despite the massive cost-cutting, Telstra insists that it will remain a "premium" telecommunications brand and lead in the roll-out of 5G mobile networks.

The cuts come less than a month after Telstra warned 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.

Under Telstra2022 all Telstra's 1800 consumer and small business plans are going to be "retired, " replaced by 20 core plans sitting on digital platforms.

The structural aspect of the strategy involves the creation of a new unit housing all Telstra's infrastructure other than that which supports in mobile network.

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.

Leading in all key industry surveys for network performance.

As reported by Business Insider, the overhaul will save the business a billion dollars. It will include fixed networks, data centres, non-mobile fibre, the HFC network, worldwide sub-sea cables, exchanges, ducts, pipes, NBN-related revenues and relationships and Telstra Wholesale. Its services will be sold to Telstra, wholesale customers and NBN Co.

"As technology innovation is increasingly relying on connectivity, the role of telecommunications infrastructure is becoming more important", said Mr Penn. In this world our infrastructure assets are becoming more valuable.

To create a leaner operation, it will also split its mobile and infrastructure divisions into separate businesses.

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