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Telstra plans to fire off 2,800 employees as part of cost-cutting initiatives.

Telecommunications firm Telstra to lay off 2,800 staff as part of cost-cutting initiatives.

Telstra, Australia’s largest telecommunications provider, plans to reduce approximately 2,800 jobs in order to remain competitive. The corporation intends to prioritise expansion across its operations while also guaranteeing long-term sustainability and efficiency.

These employment layoffs will have the greatest impact on the enterprise unit, which is in charge of delivering connectivity to Australia’s major organisations. According to media estimates, layoffs will affect personnel in a variety of divisions, with around 15% of executive positions potentially lost.

Telstra’s move to cut its workforce is part of a larger strategy to invest in infrastructure, services, and technology to improve the customer experience. According to Vicki Brady, Telstra’s CEO, the job losses are expected to be completed by the end of 2024, saving $350 million. Employees affected will receive severance payments and related support for six months to help them adjust.

The company’s choice to remove jobs is influenced by its financial performance, with particular departments or units performing below expectations. Inflation and growing energy costs have also hampered the company’s operations.

It’s worth mentioning that this is the first time employment losses have occurred under CEO Vicki Brady’s leadership since she took over in 2022. Prior to her term, Telstra’s former CEO, Andy Penn, had launched a cost-cutting strategy that resulted in nearly 2,000 job layoffs by 2021.