Telstra to cut 1100 jobs - more layoffs possible

Telstra will cut 1100 jobs by June 2014 as part of a restructure announced in May, the telco revealed yesterday afternoon.

The majority of the cuts are expected to come from the Telstra Operations business unit, which is responsible for, among other things, the design and construction of the telco’s networks, as well as the delivery of customer services across those networks.

The layoffs equate to about 6% of the Telstra Operations unit and about 3% of Telstra’s total Australian workforce.

Telstra employees affected by the job cuts include fixed-network techs in NSW, the ACT, Victoria, Tasmania and Queensland, as well as those in the company’s media operations and customer service teams.

According to Telstra COO Brendon Riley, the cuts are intended to remove duplications from the business.

Riley said that more cuts to other divisions were “possible”.

The Communications, Electrical and Plumbing Union (CEPU) was critical of the job cuts.

CEPU National Secretary Shane Murphy said: “This initial announcement is just the tip of the iceberg. We expect, as per an email from Brendon Riley, that this is the first round in a number of cuts to be announced between now and the end of the financial year.

“This is one of the most profitable companies in Australia and yet it continues to move jobs offshore," Murphy said.

CEPU spokesman John Ellery said the cuts would hinder Telstra’s chances of winning NBN contracts.

The cuts are part of a restructure the company announced in May, which will see the telco’s operational activities reorganised into five groups.

Picture: Telstra COO Brendon Riley