Telstra increases restructuring costs by $200 million

Company News

by Rachael Jones

Telstra (ASX:TLS) is increasing guidance on its restructuring costs for FY19 by around $200 million due to proposed job cuts.

This will result in the relevant restructuring cost being brought forward from FY20 to FY19.

They expect to have announced a reduction of approximately 6000 roles by the end of the financial year, which puts it on track to reach the previously announced net cost out target of $2.5 billion by the end of 2022.

Telstra now expects total annual restructuring costs to rise to $800 million from around $600 million.

Shares in Telstra (ASX:TLS) are trading 0.7 per cent higher at $3.58.

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.