Australia’s Telstra to cut up to 2,800 jobs by year-end to simplify operations

(Reuters) – Australian telecom firm Telstra said on Tuesday it would reduce up to 2,800 jobs from its direct workforce by the end of this year, as a part of its proposed measures to simplify operations and improve productivity.

Consultation on 377 of those roles would begin immediately, mainly from areas supporting the products and services to be exited in its enterprise business, Telstra said.

The company expects to record one-off restructuring costs of A$200 million ($133.36 million) to A$250 million in fiscal 2024 and 2025.

Telstra reiterated its earnings forecast for 2024 and said it expects underlying earnings before interest, taxes, depreciation, and amortization for 2025 between A$8.4 billion and $8.7 billion.

Telstra had first announced a review of its products and services under its enterprise business in February.

It said on Tuesday it had identified a number of actions under the review, which include streamlining its product portfolio and reducing network applications and services products in market by close to two-thirds.

Telstra said it would also reshape some of its internal operations by moving its Global Business Services function into other parts of the business.

($1 = 1.4997 Australian dollars)

(Reporting by Himanshi Akhand in Bengaluru; Editing by Shailesh Kuber)