Telstra to cut 1,100 jobs

Telstra employees hold their breath as the company announces a 3% reduction in total workforce.

Telstra (ASX: TLS) has issued a press release stating that 1,100 jobs will be cut by June 2014 as a result of the restructure it announced in May.

Chief Operations Officer Brendon Riley says the restructure is about ridding the company of duplicate roles. He also said that many employees suspected there would be cuts to the workforce: “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”.

Although the company intends to deliver the news with “the utmost respect and sensitivity”, many will be disappointed, especially after the company recognised a $3.9 billion annual profit in the past 12 months.

The company said the cuts will equate to roughly 6% of the operations workforce but doesn’t include the 300-400 jobs that will be created in the National Application Services division stemming from the Telco’s contract with defence. “It is important to note that this figure does not include the large number of roles we expect to add to service some of our large NAS contracts, such as the 300-400 roles we need to add under our contract with Defence,” Mr Riley said.

The restructure will result in five separate divisions and despite the cuts Mr Riley says the operations team is focused on finding ways to make the business more streamlined and productive.

“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.”

These cuts follow from the Telco’s decision to cut 170 jobs in July. Telstra shares were flat in mid-afternoon trade.

How does this latest news affect Telstra’s prospects? Discover whether you should buy, sell or hold Telstra shares in our brand-new report, written by a top Motley Fool analyst. It’s free, click here for your instant download!

More reading


Motley Fool contributor Owen Raskiewicz does not have a financial interest in any of the mentioned companies.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »