Telstra poised to cut 110 jobs across enterprise and service teams

Telstra poised to cut 110 jobs across enterprise and service teams

Telco giant issues proposed operating model changes

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Telstra is on the verge of cutting a further 110 jobs, should changes to enterprise sales and service teams go ahead.

As reported by sister publication Computerworld Australia, the telecommunications giant has issued proposed operating model changes which could also result in cuts to local and international contractors.

According to a Telstra spokesperson, the redundancies are “directly linked to our strategy to improve the way we service our customers and drive profitable growth”.

“The proposal is subject to an open and thorough period of consultation with employees and their representatives that will take place over the coming weeks,” the Telstra spokesperson added.

“The roles make up part of the net reduction of 8000 employees and contractors announced last month, however, the roles are not related to the Telstra2022 organisational structure to be announced at the end of this month.”

The proposed redundancies come less than a month after a mammoth round of internal changes at the company, with plans to slash up to 8,000 jobs in the next three years as part of a strategic review titled ‘Telstra2022.’

As reported by ARN, Telstra said this was a part of a new plan to simplify its operations and product set, aimed at improving customer experience and reducing costs.

Consequently, the telco expects FY19 EBITDA guidance to range between $8.7 - $9.4 billion, excluding about $600 million in restructuring costs.

Due to Telstra2022, up to 8,000 employee and contractor roles will be impacted, reducing about 30 per cent in labour costs for the telco.

Specifically, this will include removing one in four executive and middle management roles to flatten the structure, Telstra said, effectively stripping away two to four layers of management.

This is due to the creation of Telstra Global Business Services group which is set to consolidate all large scale “back of house” processes and functions using technology to reduce costs for large repeatable functions.

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