Telstra to slash 8000 jobs over next three years

Stock image.
Stock image.

TELSTRA is axing 8000 jobs over the next three years as it tries to save $1 billion while tackling the cost of investing in new technology and increased competition from its rivals.

Chief executive Andy Penn briefed staff about the job cuts on Wednesday ahead of a planned investor briefing about a new strategy for the telco that will focus on simplifying its product range in an attempt to attract more customers.

Telstra will axe one in four of its executive and middle management jobs as it cuts 8000 employees and contractors over the next three years.

“We have to do this because I think as an industry we’re at a tipping point,” Mr Penn told reporters.

“I think the current nature of telecommunications products and services is unsustainable and it has to change and we at Telstra are going to lead that change.”

In May, Telstra said its 2017/18 earnings would likely be at the bottom of its guidance range of $10.1 billion to $10.6 billion, blaming increasing competition in mobile and fixed broadband, and rising costs from the national broadband network.

While the telco is sticking by that forecast, it now expects a fall in earnings for 2019 to between $8.7 billion and $9.4 billion – excluding restructuring costs of about $600 million.