Telstra job cuts: Up to 2,800 staff to lose their jobs by the end of the year

Telstra will cut up to 2,800 jobs – an estimated nine per cent of its total workforce – by the end of the year.

Telstra CEO Vicki Brady made the shock announcement on Tuesday, claiming job cuts were necessary to ensure the company’s productivity. 

The majority of cuts will happen by the end of 2024 and are focused on reducing non-labour and indirect labour costs and would save some $350million by 2025. 

‘Some of the proposed measures, which require consultation with employees and unions, would result in up to 2800 job reductions from Telstra’s direct workforce,’ Ms Brady said in a statement to investors. 

‘[The reductions would] make the investments needed to support the ever-increasing growth in data volumes on its network and deliver improved connectivity for customers across the country.’ 

Ms Brady added Telstra employees will be supported through the changes via company staff and union representatives.

‘I appreciate the uncertainty proposed changes like this can create for our people and we will support them through this change with care and transparency,’ Ms Brady said. 

‘As we propose specific changes, we will talk them through with our teams and union representatives first.’

Telstra had an estimated 31,000-strong workforce, according to its last annual report.

The company has forecast a one-off restructuring cost of between $200million and $250million associated with the job cuts over the next two years.

The telco giant said its underlying earnings – before interest, depreciation, amortisation and tax – in 2025 was forecast between $8.4billion and $8.7billion.