TechHR
ex
L&D
UNPLUGGED
Sphere
About Us • Contact Us
People Matters ANZ
People Matters Logo
Login / Signup
People Matters Logo
Login / Signup
  • Current
  • Top Stories
  • News
  • Magazine
  • Research
  • Events
  • Videos
  • Webinars
  • Podcast

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

 

 

  • HotTopic
    HR Folk Talk FutureProofHR
  • Strategy
    Leadership Csuite StrategicHR EmployeeRelations BigInterview
  • Recruitment
    Employer Branding Appointments Permanent Hiring Recruitment
  • Performance
    Skilling PerformanceMgmt Compensation Benefits L&D Employee Engagement
  • Culture
    Culture Life@Work Diversity Watercooler SheMatters
  • Tech
    Technology HR Technology Funding & Investment Startups Metaverse
  • About Us
  • Advertise with us
  • Become a sponsor
  • Contact Us
  • Feedback
  • Write For Us

Follow us:

Privacy Policy • Terms of Use

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

People Matters Logo
  • Current
  • Top Stories
  • News
  • Magazine
  • Research
  • Events
  • Videos
  • Webinars
  • Podcast
Login / Signup

Categories:

  • HotTopic
    HR Folk Talk FutureProofHR
  • Strategy
    Leadership Csuite StrategicHR EmployeeRelations BigInterview
  • Recruitment
    Employer Branding Appointments Permanent Hiring Recruitment
  • Performance
    Skilling PerformanceMgmt Compensation Benefits L&D Employee Engagement
  • Culture
    Culture Life@Work Diversity Watercooler SheMatters
  • Tech
    Technology HR Technology Funding & Investment Startups Metaverse
Layoffs hit Telstra: 2,800 employees cut in major cost-cutting initiative

News • 21st May 2024 • 3 Min Read

Layoffs hit Telstra: 2,800 employees cut in major cost-cutting initiative

Talent Management#HRTech#Layoffs#HRCommunity

Author: Samriddhi Srivastava Samriddhi Srivastava
1.5K Reads
CWU National Assistant Secretary James Perkins expressed concerns, stating, "We were completely unaware and have been blindsided by this decision." He also raised concerns about Telstra's ability to maintain service levels following such significant workforce reductions.

Telstra, Australia's largest telecommunications company, announced plans to lay off up to 2,800 workers as part of an aggressive cost-cutting strategy. This significant workforce reduction, set to occur predominantly by the end of this year, represents approximately 9% of Telstra's current workforce, which stood at over 31,000 employees as of August 2023.

Telstra's Chief Executive Officer, Vicki Brady, acknowledged the unsettling nature of these changes for affected employees. "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," Brady stated, as per media reports. 

She emphasised the company's commitment to discussing specific changes with the impacted teams and union representatives before proceeding.

In a formal statement to the Australian Securities Exchange (ASX), Telstra indicated that consultations regarding 377 of the affected roles would commence immediately with unions and relevant teams. 

The Communication Workers Union (CWU), however, expressed surprise and disappointment over the announcement. CWU National Assistant Secretary James Perkins remarked, "We were absolutely unaware and we've been blindsided by this decision." He voiced concerns about Telstra's ability to maintain service levels after such significant workforce reductions.

Telecommunications management and business consultant Paul Budde noted that while job cuts at Telstra were expected, the magnitude of this reduction was surprising. The affected roles are primarily within Telstra Enterprise, a division that provides communication services to large businesses. 

Budde suggested that Telstra's strategy might include partnering with other market players to streamline its network application and services portfolio, possibly transitioning some customers to alternative providers for specialised services.

In addition to the workforce reductions, Telstra announced it would forgo controversial inflation-linked price increases on its consumer post-paid mobile plans scheduled for July 1. "We will not be making pricing changes in July for our consumer post-paid mobile plans," Brady confirmed. However, she noted that Telstra's ongoing pricing review would continue across all product lines.

This move has sparked mixed reactions among analysts. UBS telecommunications analyst Lucy Huang cautioned that the decision might not benefit customers in the long run, especially as inflation trends downward. 

"TLS (Telstra) suggests this gives them more flexibility on pricing review," Huang wrote, referencing Vodafone's recent price adjustments that exceeded Consumer Price Index (CPI) increases. Similarly, Barrenjoey analysts Eric Choi and Annie Zhu echoed these sentiments, suggesting that Telstra's approach to pricing could remain dynamic and responsive to market conditions.

The cost-cutting measures are part of Telstra's broader strategy to save approximately $350 million annually by the end of the next financial year. However, the company anticipates incurring between $200-250 million in restructuring costs related to the redundancies. 

Despite these immediate financial burdens, Telstra has projected an optimistic outlook, forecasting a pre-tax, pre-interest profit (EBITDA) of $8.4-8.7 billion for the financial year 2025.

The decision to implement these cost-saving measures comes amid a challenging economic environment and shifting market dynamics. As Telstra navigates these changes, the focus will likely remain on balancing financial performance with maintaining service quality and customer satisfaction. 

The company's efforts to manage this transition with transparency and support for affected employees will be closely watched by industry stakeholders and the broader public.

In conclusion, Telstra's announcement marks a significant step in its ongoing efforts to streamline operations and enhance profitability. 

While the immediate impact on the workforce and potential service implications raise concerns, the company's strategic adjustments reflect its adaptation to evolving market conditions. As Telstra moves forward, its ability to execute these changes effectively while maintaining customer trust and service standards will be crucial to its long-term success.

Read More

Did you find this article helpful?


You Might Also Like

NASA restructures, cuts jobs

NEWS • 11th Mar 2025 • 3 Min Read

NASA restructures, cuts jobs

Talent Management#HRTech#Layoffs#HRCommunity
DHL announces 8,000 job cuts

NEWS • 7th Mar 2025 • 3 Min Read

DHL announces 8,000 job cuts

Talent Management#HRTech#Layoffs#HRCommunity
Disney, Wells Fargo & Renault Nissan cut thousands

NEWS • 6th Mar 2025 • 5 Min Read

Disney, Wells Fargo & Renault Nissan cut thousands

Talent Management#HRTech#Layoffs#HRCommunity
NEXT STORY: Paid placements in New Zealand: Here’s everything you need to know about this initiative

Trending Stories

  • design-thinking-hr

    Skype is dead: Did Microsoft's leadership let a billion-doll...

  • design-thinking-hr

    Keeping the C-suite in the C-suite - how do we reduce execut...

  • design-thinking-hr

    Return to office: the legalities

  • design-thinking-hr

    The trust factor: Why modern leaders can’t afford to overl...

People Matters Logo

Follow us:

Join our mailing list:

By clicking “Subscribe” button above, you are accepting our Terms & Conditions and Privacy Policy.

Company:

  • About Us
  • Advertise with us
  • Become a sponsor
  • Privacy Policy
  • Terms of Use

Contact:

  • Contact Us
  • Feedback
  • Write For Us

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

Get the latest Articles, Insight, News & Trends from the world of Talent & Work. Subscribe now!
People Matters Logo

Welcome Back!

or

Enter your registered email address to login

Not a user yet? Lets get you signed up!

A 5 digit OTP has been sent to your email address.

This is so we know it's you. Haven't received it yet? Resend the email or then change your email ID.

People Matters Logo

Welcome! Let's get you signed up...

Starting with the absolulte basics.

Already a user? Go ahead and login!

A 5 digit OTP has been sent to your email address.

This is so we know it's you. Haven't received it yet? Resend the email or then change your email ID.

Let's get to know you better

We'll never share your details with anyone, pinky swear.

And lastly...

Your official designation and company name.