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UPDATE 1-Australia's Telstra to shed 1,400 jobs in cost-cutting drive

Published 14/06/2017, 12:28 pm
© Reuters.  UPDATE 1-Australia's Telstra to shed 1,400 jobs in cost-cutting drive
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* Telstra to cut 4 pct of workforce

* Teltstra facing falling revenues and tough competition

* Shares flat (Recasts and adds details)

SYDNEY, June 14 (Reuters) - Telstra Corporation Ltd TLS.AX , Australia's largest telecoms company, said on Wednesday it will shed about 1,400 jobs as part of a cost cutting drive, equivalent to four percent of its total staff.

Telstra dominates the mobile telephone and broadband industries in Australia. But like may incumbent telecom firms around the world, it is under pressure as profits from traditional fixed-line networks drop and competition squeezes mobile margins.

The job cuts were first reported by The Australian newspaper. A spokesman said the company would issue a statement after announcing the changes to staff and declined to give further details.

Telstra in February disappointed the market with a surprise profit drop and flagged restructuring costs between A$300 million and A$500 million ($226 million-$377 million) for the 2017 financial year. in the company on Wednesday rose 0.3 percent in morning trade as the broader S&P/ASX 200 index .AXJO climbed 0.8 percent.

The stock has dropped 14 percent so far this year, hurt by weak results and a move by rival TPG Telecom TPM.AX to enter the mobile market. also aims to defend mobile market share by spending A$3 billion on its network, while looking to find growth by investing in new businesses such as mining, healthcare and cloud computing. But none of these are yet picking up the slack created by traditional revenue declines.

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