Telstra To Cut Up To 2,800 Jobs

(RTTNews) - Telstra Corp. Ltd. (TLSYY.PK, TLS.AX, TLS) announced plans to streamline its operations and cut costs, aiming to reduce its direct workforce by up to 2,800 jobs by the end of this year.

The Australian telecom giant said consultation on 377 of those roles would begin immediately, mainly from areas supporting the products and services to be exited in Enterprise.

Telstra expects one-off restructuring costs of A$200 million - A$250 million across fiscal year 2024 and fiscal year 2025. These costs will be excluded from guidance and are in addition to BAU annual restructuring costs.

Telstra reiterated its fiscal year 2024 guidance and provided fiscal year 2025 underlying EBITDA guidance of A$8.4 billion- A$8.7 billion.

Telstra also reaffirmed its commitment to delivering its T25 CAGR ambitions for Underlying EBITDA, earnings per share and ROIC growth.

Telstra said it has identified a number of actions under review of Telstra Enterprise. These include a streamlined product portfolio, reducing the number of NAS products in market by close to two thirds; a simplified customer sales and service model to better support customers; and a reduction in the cost base of the Telstra Purple tech services business - particularly NAS products.

Telstra also announced it would be updating the customer terms for its postpaid mobile plans to remove the CPI-linked annual price review.

In addition to starting the reset of Telstra Enterprise, Telstra said it will reshape some of its internal operations by moving its Global Business Services function into other parts of the business.

Telstra also continues to focus on a range of actions to reduce its non-labor and indirect labor costs.

With the actions, Telstra said it expected to achieve A$350 million of its T25 cost reduction ambition by the end of fiscal year 2025.