Unions says layoffs announcement 'comes out of the blue'
Telecommunications firm Telstra will be laying off 2,800 employees as part of cost-cutting measures within the organisation.
Telstra CEO Vicki Brady said most of the job reductions will occur by the end of the year. Consultation around 377 roles, however, will begin immediately.
"I appreciate the uncertainty proposed changes like these can create for our people, and we will support them through this change with care and transparency," Brady said in a Telstra Market Update.
The CEO said the reductions are a part of the company's "reset" of its Enterprise business, with the aim of simplifying operations and improving productivity.
"The measures announced today are difficult, but they are necessary," Brady said.
The company, which has over 31,000 employees as of August 2023, is expecting one-off restructuring costs of $200 to $250 million across FY24 and FY25. But it is expecting to save $350 million a year in costs by the end of FY2025.
Job cuts were 'out of the blue'
Treasurer Jim Chalmers called it a "very distressing day" for those who received Telstra's bad news.
"We're thinking of all of the families who are impacted by these big job cuts at a major Australian employer and we need to make sure that the services don't suffer as a consequence of these changes," Chalmers told reporters.
The Communication Workers Union (CWU) also said they will be seeking meetings with the company, noting that the job cuts "completely come out of the blue."
"You can't axe 2,800 jobs and not expect it to have an impact on service delivery," said James Perkins, CWU national assistance secretary, as quoted by 9News.
Perkins warned that the cuts will have a "devastating impact on services."
"You can't slash thousands of jobs without seriously impacting the delivery of services across the country. Telstra has to answer to this," he said.
