- Telstra to cut 8,000 jobs to save the company $1billion following service failures
- One in four executive and middle management roles will be in the firing line
- In an announcement the telco said the plan long term is ‘to flatten the structure’
Telstra will cut 8,000 jobs to ‘simplify its operations and product set’ as part of a $1billion cost-cutting plan.
The telecommunications giant said in a market announcement on Wednesday morning that the long term the plan is ‘to flatten the structure’.
It is understood that one in four executive and middle management roles will be slashed.
Telstra to cut 8,000 jobs to save the company $1billion following service failures
‘In the future our workforce will be a smaller, knowledge-based one with a structure and way of working that is agile enough to deal with rapid change,’ Telstra chief executive Andrew Penn said in the statement.
‘This means that some roles will no longer be acquired, some will change and there will also be new ones created.’
A 30 per cent overall reduction will be put in place to flatten its workforce to slash labor costs.
Initially the focus will aim to cut back top and middle-run roles while disrupting customer facing teams as little as possible.
To meet ‘new capabilities required for the future’, Telstra said it would invest about 1500 jobs.
Federal Labor frontbencher Richard Marles described Telstra’s decision to slash 8000 jobs as a ‘huge shock’.
‘That is a very significant number of employees – even over that period of time – and this is going to be a very difficult day for every Telstra worker,’ Mr Marles told Sky News on Wednesday.
More to come.
One in four executive and middle management roles will be in the firing line
Advertisement