Telstra to axe 8,000 jobs

Company News

by Rachael Jones

Telstra (ASX:TLS) is to axe 8,000 jobs as part of a $1 billion cost-cutting plan.

Known as Telstra 2020 the company plans to take total cost reductions to $2.5 billion.

The job losses will be mainly from contractors and management with one in four executive and management positions to go.

The three year strategy plans to focus on four goals - to create digital experiences and to eliminate customer pain points, to give options following the NBN roll out. Plans to simplify ways to serve customers and they hope to implement a leading cost reduction program.

Telstra's chief executive Andy Penn says the company had to take drastic action to stay on top in an increasingly competitive telecommunications market.

He said in a statement this morning: "We are now at a tipping point".

Their Financial Year 2019 EBITDA guidance of $8.7 - $9.4 billion is expected, excluding restructuring costs of approximately $600 million.

Shares in Telstra (ASX:TLS) are trading 6.7 per cent lower at $2.71
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.