Telstra axes nearly 500 roles in first round of major job cuts

The Aussie telco has slashed hundreds of jobs in the first brutal round of job cuts in a bid to cut back on costs.

Telstra has axed nearly 500 roles across its enterprise unit, in the first major round of job cuts as the telco attempts to slash $500m in costs.

Some 472 workers were told they had lost their jobs on Wednesday, The Australian reports, with most of the roles understood to be in the Aussie telco’s enterprise workforce.

Telstra has slashed hundreds of jobs in the first major round of cuts to slash millions of dollars in costs. Picture: NCA NewsWire / Luis Enrique Ascui

A Telstra spokesperson has confirmed to news.com.au that the company has proposed changes to “reshape our business” in order to “remain competitive, efficient as well as effective in the way we work”.

“If the change proceeds it will see some of our people leave the organisation and the creation of new roles, with a net reduction of around 472 jobs,” the spokesperson said.

“Decisions like this are always difficult. We know and feel the personal impact on our people and their families.”

It is understood any affected workers will be given access to support services and redundancy packages if they cannot find another role within the company.

The spokesperson said there would not be any reductions to Telstra’s consumer teams, who serve customers in-store, on the phone, or at home.

It is the first found of job cuts under the stewardship of new Telstra CEO Vicki Brady. Picture: NCA NewsWire / Luis Ascui

This is the first major round of job cuts under chief executive Vicki Brady, and are part of Telstra’s effort to cut $500 million in fixed costs by 2025 – under its T25 strategic plan.

The T25 strategy, announced by Telstra’s former chief executive Andy Penn in 2021, builds on the changes made under its recent T22 strategy – which cut at least $2.5 billion in annual costs and saw 8000 jobs get the chop amid sweeping changes to the company.

In announcing the T25 strategy in 2021, Mr Penn told investors while the T22 plan was a “strategy of necessity”, focused on overhauling and simplifying Telstra services and products, this latest plan will be a “strategy for growth”.

Telstra is on a mission for “growth” in its T25 strategy, which aims to save $500m in costs. Picture: NCA NewsWire / Jeremy Piper

In February this year, CEO Vicki Brady recommitted to Telstra’s plan to save $500 million in net costs under T25; but said it would be a “much bolder target now” due to inflation.

“T25 is a strategy that leverages the foundation and capabilities we have built over the last few years. I am absolutely confident it is the right strategy,” she said, The Australian reports.

“But naturally, it may be necessary to make adjustments to it at times to deliver customer experience improvements, new growth opportunities, and fundamentally shift the way Australians feel about us.”

In March, a Telstra spokesperson told theAustralian Financial Review that the telco did not have “job reduction targets under T25; however, we have always said that we expect some workforce reductions as technology and customer needs change”.

The Telstra job cuts come after NBN Co announced it would axe 500 roles – more than 10 per cent of its workforce – by June in a bid to curb cost pressures.

Originally published as Telstra axes nearly 500 roles in first round of major job cuts