Investing.com - In an era dominated by digitization and automation, Telstra Group Ltd (ASX:TLS), the largest telecommunications company in Australia, announced plans on Thursday to eliminate nearly 500 positions. This move is also influenced by the firm's decision to abandon some of its traditional products and services.
This proposed workforce reduction represents a little over 1% of Telstra's total staff count. The timing coincides with global businesses seeking cost-saving measures due to persistent inflation coupled with soaring interest rates.
The job cuts form part of a broader effort to streamline operations as the company transitions away from legacy offerings towards more modern digital solutions involving automation and new technology, according to a representative from Telstra via email communication.
However, it was assured that these impending layoffs will not impact customer-facing roles within the organization.
The spokesperson further revealed that should this change be implemented, it would result in both job losses and the creation of new roles leading to a net decrease of approximately 472 positions within the organization.
Despite Australian employment figures hovering near half-century lows as per government data released on Thursday, several companies are beginning to downsize their workforces due to escalating costs related to energy consumption, fuel prices, and wage bills.
In similar news reported earlier this week by Reuters citing an internal memo - Lend Lease Group (ASX:LLC) - a listed property developer is planning workforce reductions amounting to approximately 10%.