Telstra Plans Significant Job Reductions
Telstra is reportedly poised to eliminate approximately 650 positions, as disclosed by the ABC, with the 200 job losses previously announced merely representing a fraction of impending cuts.
Internal communications shared exclusively with ABC News by Telstra employees indicated that up to 650 jobs may be at risk, with some roles potentially being outsourced to an Indian technology firm.
Following the telecom’s confirmation that 209 jobs would be erased from its AI collaboration with Accenture, employees indicated an awareness of more than 400 additional job losses under consideration.
The full extent of the layoffs was articulated in an email dispatched to staff on Tuesday at 4:49 PM AEDT, where CEO Vicki Brady itemized proposed adjustments within the Telstra Enterprise and Telstra Consumer sectors.
Telstra Enterprise caters to telecommunications requirements for businesses, whereas Telstra Consumer encompasses the retail segment of the company.
In the message, Ms. Brady asserted, “These proposals aim to diminish complexity, enhance competitiveness, and facilitate more efficient and sustainable operations.”
She further emphasized the necessity of these changes to fulfill the objectives of the Connected Future 30 initiative, which aspires to provide customers with simpler, swifter, and more competitive interactions. Vicki Brady remarks that the proposals are designed to “streamline operations.” (AAP: Bianca De Marchi)
The Connected Future 30 framework outlines a five-year strategy aimed at amplifying the integration of artificial intelligence within the organization.
In July 2025, an announcement regarding 550 job reductions had already been made as part of this strategy.
The current layoffs are in addition to that initial round of redundancy.
Options Presented to Employees
In her address to staff on Tuesday, Ms. Brady articulated: “We propose to recalibrate our service and delivery for enterprise clients through a five-year strategic partnership with Infosys, resulting in some work transitioning to Infosys and a reduction in certain roles.”
Infosys, a technology enterprise based in India, specializes in providing information technology, business consulting, and outsourcing services.
Ms. Brady highlighted, “We’ve also proposed modifications in Telstra Consumer to better accommodate evolving customer expectations, ensuring more streamlined, rapid, and seamless digital encounters.”
“If these alterations are implemented, approximately 442 roles will become redundant.”
One Telstra employee, identified as Kate, recounted to ABC how she was informed during a group Teams meeting—devoid of chat or mic options—that employees faced two choices: either apply for their positions with Infosys or accept redundancy.
Kate elaborated on the options presented:
- Option 1: Transition to Infosys by submitting an Expression of Interest (EOI), though acceptance is not guaranteed as joint assessments will be conducted.
- Option 2: Redundancy, wherein failure to submit an EOI or a lack of selection would initiate the redundancy process.
Thus, certain affected employees may opt to pursue alternative roles with Infosys.
Aim to Streamline Operations
Ms. Brady informed staff, “While progress has been commendable over the past five years in simplifying operations and enhancing customer experience, complexities persist in certain segments of Telstra, hampering business transactions.”
In an effort to ameliorate this “complexity” and bolster operational efficiency, Telstra and Accenture have entered into a joint venture.
Within this JV framework, an additional 209 job reductions are anticipated.
Telstra Joint Venture to Eliminate Additional Positions Amidst AI Advancements
While aiming to “enhance customer experiences,” the joint venture did not clarify how many positions would be relocated to India.
The $700 million joint venture, unveiled in early 2025, is reportedly designed to refine business processes.
A spokesperson for the JV conveyed to ABC on Tuesday: “We engaged with the Telstra Accenture Data & AI Joint Venture team today regarding proposed workforce modifications, including the elimination of roles that are no longer required and the redistribution of some tasks to the Indian JV team.”
“These adjustments will enable the JV to leverage Accenture’s global expertise, advanced AI capabilities, and specialized hub in India to expedite Telstra’s data and AI roadmap,” the spokesperson added.
The precise number of roles reassigned to India remains uncertain.
In addressing this latest wave of redundancies, Ms. Brady remarked: “I recognize this news may be difficult to absorb, yet I firmly believe these proposals are crucial for cultivating a more streamlined and competitive organization as we advance our Connected Future 30 strategy.”
A Telstra representative assured the ABC that the company is “dedicated to consulting our workforce first regarding the proposed changes.”
“Should these proposals proceed, both Telstra and the JV are committed to exploring redeployment options for those impacted,” they noted.
“Our team at Telstra will have the opportunity to apply for open positions within the company, while the JV team can seek roles with either Telstra or Accenture.”
“If such options are unfeasible and individuals depart from Telstra or the JV, they’ll have access to robust severance benefits and an array of supportive services.”
Source link: Abc.net.au.
