Telstra to cut 2,800 jobs in enterprise restructure

Telstra outlined plans to reorganise its enterprise business, aiming to streamline operations and improve productivity by cutting up to 2,800 jobs, the majority of which will go by the end of the year.

In a statement, CEO Vicki Brady explained it is putting measures in place to reset its enterprise unit which faces challenging market conditions, to ensure Telstra can continue to invest to support ever-increasing growth in data volumes on its networks.

Brady noted with many enterprise products and services discontinued, it will begin reviews on 377 positions immediately, adding many roles require consultation with employees and unions.

The operator forecasts one-off restructuring costs of AUD200 million ($133.4 million) to AUD250 million in fiscal 2024 (ending 30 June) and 2025, and expects to reach a previously set target of cutting its outlay by AUD350 million by end-June 2025.

In addition to the enterprise changes, the company will shift its Global Business Services function into other parts of the business to simplify processes.

Telstra stated a review of its enterprise unit is ongoing, with an update on progress and the next steps to be provided with its full-year results in August.

Brady reaffirmed its underlying EBITDA guidance for fiscal 2024 at AUD8.2 billion to AUD8.3 billion and set the target at AUD8.4 billion to AUD8.7 billion for fiscal 2025.

Underlying EBITDA was AUD8 billion in fiscal 2023.