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