Telstra cuts 2,000 jobs by end 2021 in market “headwinds”

Telstra announced that it is aiming to reduce 2,000 jobs by the end of the year to reduce costs as telecommunications giants struggle to make a profit in the national broadband network market.

Vicky Brady, chief financial officer of the telephone company, confirmed that the company plans to hire 8,000 staff directly in the workforce as part of T22’s headcount reduction program.

“By June, we expect to reach our T22 target by more than 90%, reduce our direct workforce in a net role of 8,000, and complete it by the end of the calendar year,” she told the Macquarie Australia Conference. I told you.

The company has already reduced its total staff of 6,000 direct employees and 1,600 indirect employees to return profits to shareholders.

Telstra’s restructuring was imposed as it faced a “headwind” in the NBN market from rivals such as Vodafone and Optus while dealing with financial difficulties during the pandemic.

Epoch Times Photo
Telstra Store staff will unlock the latest Apple iPhone in Melbourne on September 21, 2018. (Photo courtesy of William WEST / AFP) (Photo courtesy should read WILLIAMWEST / AFP via Getty Images)

The move cuts thousands of Telstra employees, but does little harm to CEO Andy Penn, who plans to bring about $ 4.5 million home, and Brady, who brings millions of dollars in salary reports home. Is said to be missing Channel news..

Brady believed that the T22 program would help telcos profit.

“2021 is a turning point in the financial performance of our business,” she said.

“The continued focus on the T22 enables our customers to achieve simpler and better results, increase productivity and raise cost reduction goals.”

“Product margin improvements are imminent and are already happening on mobile,” Brady added.

Telecom giants are also planning to reduce customer service work while strengthening the virtual assistant Codi, which customers blame as a waste of time because they can’t even understand simple requests.

The company admitted that customers prefer human agents to artificial intelligence, but said routing bots have become more sophisticated.

“Our goal was to reduce the number of calls to call centers by two-thirds by 2010,” Brady said.

“The acceleration to digital has already reached this rate more than a year before the strategy ends, which means that over time, we’ll need a smaller call center for these customers, and more at home. Many people will start working. “

Brady also introduced Telstra’s “ambition” (the process of gradually amortizing the initial cost of assets) to boost interest, tax, depreciation, and pre-amortization earnings growth in the next fiscal year. I emphasized “one digit of”. After falling 14.2% in the second half of 2020.

“There are clear positive indicators of improved financial trajectory,” Brady said.

She said she hopes Telco is on the road to achieving its economic ambitions in 2023.

The announcement came two days after Telstra was fined more than $ 1.5 million for not being able to transfer existing mobile numbers to another network.