Telstra jobs plan sends support for Qantas, banks offshore
Telstra this week floated plans to cut up to 170 full-time local jobs and outsource jobs to India as part of sweeping changes to the company's operations.
The media were told the job losses would occur in the company's back-office. However, documents obtained by Fairfax Media 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, titled The NA&S Global Delivery Model, was distributed to Telstra staff on Tuesday. It is understood that some of the positions that will be lost are dedicated support positions which 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 would lose their jobs if the plan goes ahead.
Telstra did not deny the contents of the documents. "No decision has yet been made to proceed," Telstra 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 proposed job cuts would begin from October and take up to a year to complete.
The news follows an announcement in May that Telstra would also reorganise its operational activities, in changes expected to affect about half of the company's 30,000-strong domestic workforce. But the job losses announced on Tuesday are part of a different restructure of operations.
Telstra's David Burns said the restructure and job cuts would affect the company's Network Applications and Services unit, which provides customers in government and business with products and network services. Mr Burns said the offshoring would promote domestic and international growth: "Our need to expand our capability and support our growth in Asia is a need for now."
But analysts said the move was more to do with reducing costs.
"Telstra's been reducing its staffing literally for years, and another group of 170 - and I don't mean to make light of it - but it's just the latest instalment," BBY analyst Mark McDonnell said.
Frequently Asked Questions about this Article…
Telstra has floated plans to cut up to 170 full‑time local jobs and outsource some roles to India as part of a restructure. Documents circulated internally (titled “The NA&S Global Delivery Model”) show the company is considering moving certain support and specialist roles offshore, though Telstra says no final decision has been made.
The documents indicate some technical expert and specialist teams that look after the complex computer networks of National Australia Bank (NAB), Qantas and Westpac could be targeted. That means critical support functions for these corporate customers could be affected if the plan proceeds.
The plan would target up to 170 full‑time local jobs, mainly in back‑office areas but also including some technical expert and specialist support roles. The documents also show 12 trainee contractors in Telstra’s South Australian operations could lose their jobs if the plan goes ahead.
Telstra’s proposed job cuts were expected to begin from October and the process could take up to a year to complete, according to the documents.
Telstra did not deny the document contents but stated no decision has yet been made. A company spokesman, Scott Whiffin, said Telstra will complete consultation with employees first and will discuss the impact with corporate customers before deciding whether to proceed.
Telstra’s David Burns has said the offshoring would help expand capability and support growth in Asia, calling it a move to promote domestic and international growth. However, analysts quoted in the article say the change is likely driven more by a desire to reduce costs.
Analysts view this move as another instalment in ongoing staffing reductions at Telstra. BBY analyst Mark McDonnell noted Telstra has been reducing staff for years and sees the potential 170 roles as the latest example, implying cost pressure is a major factor.
Investors should watch for formal announcements from Telstra after employee consultation, updates on discussions with corporate customers (like NAB, Qantas and Westpac), and any details about which technical support roles will move offshore. Those developments will indicate potential service‑risk issues and the company’s stated rationale (growth in Asia versus cost savings).
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