Telstra confirms hundreds of roles will go as the telco looks to ‘reset’

Australia’s largest telecommunications provider, Telstra, today confirmed plans to reduce its workforce, approximately 550 roles expected to be impacted as part of a broader effort to streamline its operations and transform its enterprise business division.

The proposed job reduction represents roughly 2 per cent of Telstra’s 31,000-strong workforce. The Australian tech firm insists that the massive job cuts are not related to artificial intelligence replacing human roles, but rather part of an ongoing effort to simplify operations, improve operational efficiency, and better respond to evolving customer needs.

“These changes are largely driven by the ongoing reset of our Telstra Enterprise business, as well as improvements to the structure and processes of other teams across our organisation,” a Telstra spokesperson said. “The aim is to reduce complexity, create efficiencies, and better meet the needs of our customers.”

Telstra said it will work closely with affected employees, offering them support and assistance in finding new roles within the company where possible. “If that’s not possible and they end up leaving Telstra, they’ll have access to our redundancy package and a range of support services,” the spokesperson added.
Telstra confirmed it will provide support to all employees affected by the proposed changes. Where possible, the company will work with individuals to explore redeployment opportunities within Telstra. Those unable to be redeployed will have access to a comprehensive redundancy package and support services.

Telstar’s announcement follows a broader review of Telstra’s operations, initiated in response to recent disappointing financial performance and market conditions. This is not the first time Telstar has announced major changes to its workforce. In May 2024, the company announced a plan to reduce its workforce by up to 2800 roles, or 9 per cent of its total headcount, as part of a cost-cutting initiative. Ultimately, about 1900 positions were eliminated.

At the time, Telstarr CEO Vicki Brady said the major job cuts would deliver approximately $350 million in savings and boost overall productivity.

Looking ahead, Telstra remains focused on driving value for customers and shareholders. According to a June investment note from the Swiss-based UBS, the Australian company is projected to generate $23.9 billion in revenue and $2.28 billion in net profit for the 2025 financial year, reflecting the company’s ongoing efforts to restructure and adapt to changing market conditions.