Telstra will cut around 1100 jobs from its operation business by June next year, around 6 per cent of its operations staff.
Telstra said the job cuts are a result of restructuring the telco announced in May this year, which includes splitting operations into five groups responsible for delivering the company's services.
“At the time, we said we expected there to be impacts on jobs from these changes and, after reviewing the business over the last few months, today we briefed our people on the expected impacts,” Brendon Riley, Telstra’s chief operations officer, said in a statement.
“Always when there are implications for people’s jobs it is difficult and this is no exception. We will work through a careful consultation process with our people and we will do so with the utmost respect and sensitivity.”
As part of the restructuring plans, Telstra will consolidate fixed network technicians in NSW, the ACT, VIC, QLD and TAS; review its media operations team; and restructure its customer service delivery team.
The Community and Public Sector Union (CPSU) has called the decision a “slap in the face for Telstra workers”.
“Our members are shocked by the announcement. It's really demoralising for them. Telstra has made more than $3 billion in net profit every year for the past five years. Those profits are the result of the hard work of staff and it's hardly a fair reward to have 1100 jobs cut.”
The CPSU has said union reps will meet with the telco tomorrow and are asking for Telstra to reverse the decision to cut jobs.
Telstra said it plans to add 300 to 400 jobs to help service its Network Applications and Services (NAS) contracts, including a contract with Defence.
“As we have said previously, Telstra is a changing business in a changing industry. We are seeing reductions of roles in declining businesses due to evolving technologies and the restructuring of our industry, and growth in other areas such as NAS,” Riley said.
Revenues at Telstra’s NAS division increased by 17.7 per cent to $1.5 billion, with strong growth across all its products in its 2013 full year results.
Telstra said part of the growth strategy for the NAS will include expanding into international markets, particularly Asia.
David Thodey, CEO at Telstra, previously told analysts discussions are already taking place around establishing delivery centres with industry partners in India.
The telco cut 2251 jobs from the company during the 2013 financial year, with 1323 of those job losses a result of the TelstraClear sale in New Zealand to Vodafone New Zealand. The job cuts cost Telstra $189 million in redundancy expenses, an increase of 16.7 per cent.