Telstra is set to reduce its workforce by up to 9% in a move aimed at boosting productivity.
CEO Vicki Brady announced that up to 2,800 jobs would be affected with the majority expected to be made by the end of this year, saving the company around $350 million.
“Some of the proposed measures, which require consultation with employees and unions, would result in up to 2,800 job reductions from Telstra’s direct workforce,” the company said in a note to shareholders.
Brady emphasised that the reductions were essential for Telstra to remain competitive and to enable investments needed to handle growing data volumes.
“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,” she said.
“As we propose specific changes, we will talk them through with our teams and union representatives first.”
The company has projected a one-off restructuring cost of between $200 million and $250 million related to the job cuts.
Communications Workers Union (CWU) national assistant secretary James Perkins condemned the cuts as a “national disgrace”. He expressed concern about the severe impact on workers, their families and the broader community dependent on Telstra’s services.
Perkins said, “You can’t slash thousands of jobs without seriously impacting the delivery of services across the country. Telstra has to answer to this.
“Telstra workers deserve better than this and so do Telstra customers.”
He noted that the announcement had left many workers and their families in distress about their future and said the CWU would seek meetings with Telstra and provide support to the affected workers.