Telstra Corporation Ltd
(ASX:TLS) looks set to double its redundancy pay outs to $200 million in the 2011 financial year as it cuts internal costs, according to the Australian Financial Review.
The news comes following shares in Australia’s largest telecommunications company last week dropping to a record low of $2.66 per share.
AFR says the telco has already spent some of the extra $100 million on 330 senior executive redundancies made in July and says many more jobs losses are expected.
In July CEO David Thody warned of a tough year ahead. AFR reports that the redundancy payments are to be drawn from a $1 billion “fighting fund” that Mr Thody has flagged to fund the first year of his turnaround plan.
In fiscal 2010 Telstra earned $3.94 billion, dropping from the $4.08 billion profit reported in fiscal 2009.
