Australian telco giant Telstra to slash up to 2,800 jobs

Australian telco giant Telstra to slash up to 2,800 jobs

The telecom sector faces seismic AI-driven changes, rendering traditional services like landline phones obsolete.

Telstra said the job cuts would result in US$230 million in savings as it adapts to rapid technological advancements. (Telstra pic)
SYDNEY:
Leading Australian telecoms company Telstra said Tuesday it would slash up to 2,800 jobs, shedding 9% of its workforce as it keeps pace with “rapid advances in technology”.

Chief executive Vicki Brady said the job cuts would save the company around US$230 million, setting it up to better deal with “ongoing inflationary and cost pressures”.

Telecoms firms around the world are confronting seismic industry changes, grappling with the rise of artificial intelligence as traditional offerings such as landline phones become obsolete.

“Our industry and the world we are operating in is fast changing,” Brady told reporters.

“We have new and different competitors. We have rapid advances in technology. Our customer needs continue to evolve.”

Earlier this year Telstra, which employs some 30,000 staff, announced plans to scale-up its use of AI tools in customer service.

Telstra trades on the Australian stock exchange and has a market capitalisation of US$27 billion (A$41 billion).

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.