Telstra jobs plan sends bank support offshore
Telstra this week floated plans to cut up to 170 full-time local jobs and outsource jobs to India as part of sweeping operating changes.
The company said the job losses would occur in its back office. But documents obtained by Fairfax show some of the technical expert and specialist roles that will be targeted in the round of job cuts, if the plan goes ahead, will come from teams assigned to look after the complex computer networks of National Australia Bank, Qantas and Westpac.
The document, The NA&S Global Delivery Model, was distributed to Telstra staff on Tuesday. It is believed that some of the positions to be lost are dedicated support positions that provide critical technical support in the event of network faults.
The documents also show that 12 trainee contractors working in Telstra's South Australian operations will lose their jobs if the plan goes ahead.
Telstra did not deny the contents of the documents. "It's important to stress that no decision has yet been made to proceed," spokesman Scott Whiffin said.
"We'll discuss the impact of any proposed changes with our corporate customers before making any decision to proceed. These discussions won't commence until after the completion of consultation with our employees."
The job cuts, to be nationwide, will begin from October and take up to a year to complete, and follow an announcement in May that Telstra would also reorganise other operational activities that would affect about half the 30,000-strong domestic workforce.
Telstra's David Burns said the restructure and job cuts would affect the company's Network Applications and Services unit (NAS), which provides customers in government and business with products and network services including security, cloud computing and video conferencing.
Going offshore would promote domestic and international growth: "Our need to expand our capability and support our growth in Asia is a need for now," he said.
But analysts said the move was more to do with reducing costs.
"I think that's the main rationale," BBY analyst Mark McDonnell said.
Frequently Asked Questions about this Article…
Telstra has floated plans to outsource parts of its operations to India and could cut up to about 170 full‑time local jobs as part of those changes. The proposal is focused on back‑office functions and some technical roles, and was outlined in an internal document titled "The NA&S Global Delivery Model."
According to the documents, some of Telstra's biggest blue‑chip customers — including National Australia Bank (NAB), Qantas and Westpac — could have critical support operations and specialist technical roles performed out of India if the plan goes ahead.
Telstra says the restructure would affect its Network Applications and Services unit (NAS). NAS supplies government and business customers with products and network services such as security, cloud computing and video conferencing.
The plan could cut up to 170 full‑time local roles nationwide and would see 12 trainee contractors in Telstra's South Australian operations lose their jobs if it proceeds. Telstra said the job cuts would start from October and could take up to a year to complete.
Telstra did not deny the contents of the internal documents but said no final decision has been made. Spokesman Scott Whiffin said the company will discuss any proposed changes with corporate customers before proceeding and that those discussions won't start until after consultation with employees is complete.
Telstra executives, including David Burns, said moving work offshore would help expand capability and support growth in Asia. However, analysts quoted in the article — including BBY analyst Mark McDonnell — say the move appears primarily aimed at reducing costs.
The documents indicate the planned cuts focus on back‑office roles and some technical expert and specialist positions. Some of these are dedicated support roles that provide critical technical support for complex customer networks and for responding to network faults.
Investors should monitor the outcome of Telstra's employee consultations and the subsequent discussions with corporate customers, since Telstra says those talks will determine whether the plan proceeds. Also watch for further details about the NAS unit and any formal announcements on scope and timing of the reorganisation.
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