Telstra says 10,000 job cuts ‘very challenging’

Stock image.
Stock image.

TELSTRA will reduce the number of contractors it employees by about 10,000 over the next two years as it tries to cut costs, chief executive Andrew Penn says.

“The human dimension of these numbers is very challenging, that is why we have an extensive program of support in place, ” Mr Penn said on Tuesday.

Telstra has already reduced its indirect workforce by 5,000, to about 40,000, and will cut that by another 25 per cent over two years, Mr Penn said in a speech at Morgan Stanley.

Telstra has already announced plans to cut 8,000 direct roles at the company, but hadn’t previously revealed how deep the cuts would be to the industry partners that support the telco.

“Given the uncertainty this creates I have therefore been keen to get most of the changes and most of the reductions behind us as quickly as possible,” Mr Penn said.