A decade of pain for Telstra staff with more cuts in store
And unions say they are being stonewalled on the plans, with the telco failing to identify where more than 740 of the most recent cuts will come from.
Australia accounts for about 30,000 of Telstra's 40,000-strong workforce, excluding this week's announcement that 1100 jobs would go. But annual reports from last decade show that Telstra had 44,874 full-time Australian-based employees in June 2001. The number of Australian-based employees fell to 39,657 four years later.
Telstra's total workforce has been declining for years, from 48,317 in June 2001 to 46,336 in June 2005.
Its total workforce was about the same level three years later - 46,649 at June 2008 - but this fell to 38,663 as shown in its December 2012 half-year report.
Telstra spoke to union groups on Thursday about its proposal to shed workers from its operations division. But unions say they have yet to be told where the bulk of the jobs will go from.
"We found out about 360 of the jobs," Community and Public Sector Union organiser Teresa Davison said. "But they couldn't give us any information on the 740."
Telstra was earlier this week grilled by shareholders on job losses and sending jobs overseas at its retail shareholder meetings.
Chief executive David Thodey told shareholders on Monday the company had hired as many people as it had sacked in the past year, about 2000, as part of a "business rebalancing".
Mr Thodey said it was challenging because he wanted a "vibrant Australian workforce", but wherever jobs were located they must deliver good service.
On Thursday morning, Telstra chief operations officer Brendon Riley confirmed the company's numbers would shrink over the next few years.
"Overall, probably every year we will get a bit smaller," Mr Riley said. "I don't know about indefinitely, but certainly for the next few years that will be the case."
The announcement of job cuts - to be completed by June 2014 - comes as Telstra faces fresh discussions with the Coalition government about the national broadband network (NBN), in particular Telstra's $11 billion commitment to allow its infrastructure to be used by the NBN and become a retailer only.
Telstra has said it is heartened by the Coalition's promise to keep Telstra shareholders "whole" - that is, not disadvantage them under a new deal. There are also expectations that Telstra will win work for the NBN rolled out by the Coalition, which will shift from fibre-to-the-home to fibre-to-the-node.
The job cuts are part of a sweeping restructure begun in May that is aimed at shifting spending from low-growth businesses, such as landlines, to high-growth ones, such as the NBN, and network applications and services, media and Asia.
Under the restructure, Telstra's operations will be reorganised into five groups, three of which - networks, IT solutions and customer service delivery - will be new.
The bulk of this week's announced cuts will come from Telstra Operations, the business unit that handles the design, construction, and operation of Telstra's networks, plus the delivery of some customer services.
Affected employees include fixed-network technicians in Victoria, NSW, ACT and Tasmania, the media operations team and the customer service team.
Frequently Asked Questions about this Article…
Telstra is cutting jobs as part of a sweeping restructure aimed at shifting spending from low‑growth areas (like landlines) to higher‑growth businesses such as the NBN, network applications and services, media and Asia. The May restructure reorganises operations into five groups (including new networks, IT solutions and customer service delivery) so the business can focus resources on growth opportunities.
The article says Telstra has shed about a third of its local workforce over the past decade or so. Australia accounts for roughly 30,000 of Telstra’s 40,000‑strong global workforce (not including this week’s announcement that 1,100 jobs would go). Unions also say Telstra could not identify where more than 740 of the most recent cuts will come from.
The bulk of the announced cuts will come from Telstra Operations, the unit that handles design, construction and operation of networks and delivery of some customer services. Affected roles specifically mentioned include fixed‑network technicians in Victoria, NSW, the ACT and Tasmania, plus members of the media operations and customer service teams.
The job cuts announced in the article are planned to be completed by June 2014. Executives also indicated the company’s workforce would likely shrink gradually over the next few years as part of the rebalancing.
CEO David Thodey told shareholders Telstra hired about as many people as it sacked in the past year (around 2,000) as part of a “business rebalancing.” Chief operations officer Brendon Riley confirmed the company’s numbers would shrink over the next few years, saying “probably every year we will get a bit smaller” for the foreseeable future.
Unions say they have been stonewalled and that Telstra has not provided full details on where many of the cuts will come from. The Community and Public Sector Union organiser Teresa Davison said unions were only told about roughly 360 of the roles, with no information on more than 740 other proposed cuts.
Telstra’s restructure is linked to fresh discussions with the Coalition government about the NBN, including Telstra’s reported $11 billion commitment to allow its infrastructure to be used and to become a retailer‑only business. The company is hopeful of winning work under the Coalition’s shift from fibre‑to‑the‑home to fibre‑to‑the‑node, which influences where Telstra is directing investment and staffing.
Investors should note Telstra is actively shifting resources toward higher‑growth areas and expects a leaner operations footprint. Management has signalled both cost and structural change (new operating groups) and expressed confidence about potential NBN work and protections for shareholders under the Coalition’s proposals. As always, investors may want to monitor updates on contract wins, details of the restructure and any further guidance from Telstra on costs and earnings impacts.
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