Union flags further job losses in Telstra’s Enterprise Services restructure

Telstra is set to cut up to 87 jobs due to the ongoing restructure of its Enterprise Services business, according to the Communication Workers Union (CWU).

The union revealed on 2 June that it had been formally notified by Australia’s largest telco that the number of eventual redundancies arising from the restructure would be far higher than initial estimates, which stood at around 55.

The CWU said it is seeking an explanation from Telstra about the process that has led to the increase in redundancy numbers.

According to the union, the redundancies stem from Telstra’s decision to centralise both the design and workflow management functions carried out within its Enterprise Services business, while at the same time outsourcing what the company describes as “high volume, low complexity orders” to “industry partners”.

The ACU said the restructure has also involved a reclassification of certain roles.

In March, the union met with Telstra to discuss its plan to introduce a major restructure in its design and service delivery divisions, which the telco said could result in the loss of 55 roles from various locations around the country.

"The proposal is part of a new operating model for the Enterprise Services Team that would deliver improved customer service for Telstra’s enterprise customers,” a Telstra spokesperson told ARN at the time.

“By creating a Design Centre of Excellence we would reduce process and production variation and deliver better quality work for our enterprise customers.”

The latest update on the job losses expected to arise from Telstra’s Enterprise Services restructure comes less than a month after the company revealed that it could cut up to 24 jobs following a review of its wholesale customer operations in Sydney,

"A review of Telstra Wholesale’s Customer Operations team has been undertaken, to optimise team structure and identify process efficiencies, in order to provide a better customer experience for Telstra’s wholesale customers,” a spokesperson for the company told ARN in early May.

“This review may result in the loss of up to 24 full-time roles,” the spokesperson said. “A period of consultation with employees and their representatives has been completed, and our focus remains on working with our people to help them understand the changes and what it means for them.”

At the same time, Australia’s second largest telco, Optus, is also working to reduce its headcount in certain business segments, with a spokesperson for the company telling ARN in April that it had informed around 320 employees that their roles had been made redundant.

It is understood that the job cuts were to come largely from the company’s head office employee footprint, in a number of areas, including networks, IT, human resources, wholesale and satellite.

According to Optus, the company has made a number of operational changes since launching a new strategic direction just over two years ago, to reposition its business as a “highly integrated, innovative and content-driven multi-media brand”.

While the company flagged plans to create about 140 new positions to support its strategic direction and business objectives, it also confirmed there would be additional redundancies further down the track.