Australian telecom company Telstra announced Tuesday (May 21) that it will eliminate 2,800 jobs by the end of the year as part of its measures to consolidate its operations while reducing costs. 

Telstra to Cut 10% Workforce

Reuters reported that the consultation on 377 of the jobs getting cut would commence immediately, especially in fields supporting products and services that would be discontinued in its enterprise business after the company announced a review of such in February. 

Telstra expected to record a one-off restructuring cost of between A$200 million and A$250 million (between $133 million and $166 million) in fiscal year 2024-25. This reflected its 2024 earnings forecast, which expected underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) of between A$8.4 billion and A$8.7 billion (between $5.59 billion and $5.79 billion). 

Telstra CEO Vicki Brady said that the firm's approach, which she described as a "very hard day" for the company, reflected a "range of factors that go into any pricing decision" and would provide "greater flexibility" to adjust its prices across the board. 

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Discontinuing Products and services as Part of Corporate Overhaul

The Guardian reported that Telstra would particularly cease its annual price review for postpaid mobile plans beginning in July.

Analysts from UBS said that the removal of the CPI indexation clause in mobile postpaid plans was a "key surprise," adding that the company's 2023 fiscal forecast suggested that it was expecting mobile business to continue becoming a growth driver. 

In its latest stock market performance, Telstra's shares fell by 2.7% and posted its biggest single-day drop in over three weeks. 

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