Telstra says it has proposed changes to its operating model across its enterprise sales and service teams that, if implemented, will see a 110 net reduction in headcount as well as cuts to some local and international contractor.
A spokesperson for the telco said that the proposed 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 said.
“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.”
Telstra CEO Andy Penn last month revealed details of the Telstra2022 strategy, which in addition to slashing the telco’s headcount will see the creation of a new business unit — InfraCo — which will control the company’s fixed-line infrastructure and potentially be demerged.
InfraCo will include most of Telstra’s fixed-network infrastructure — including data centres, non-mobile related fibre (including international subsea cables), the telco’s copper network and hybrid fibre-coaxial (HFC) assets, exchanges, poles, ducts and pipes.
The four-pillared Telstra2022 strategy will also see Telstra streamline its product offerings, simplify its structure and further cut costs.
Telstra expects the new strategy to deliver an additional $1 billion boost to its productivity program, to $2.5 billion by FY22.
Telstra2022 comes as the company faces major changes in the telecommunications market brought about by the National Broadband Network rollout as well as the move by TPG to launch Australia’s fourth mobile network.