Australia's Telstra to cut 550 roles across company

Major Redundancies Announced Across Company

Australia’s largest telecommunications provider, Telstra, has confirmed plans to reduce its workforce by 550 positions throughout 2025. The cuts will affect staff in multiple areas of the company as part of a broader cost-cutting and transformation initiative[1][2][3].

AI Strategy and Cost Pressures

Telstra CEO Vicki Brady recently outlined the company’s vision for a “Connected Future 30” strategy, highlighting a significant shift towards advanced technologies and integration of artificial intelligence. While Brady has emphasized the critical role of AI in Telstra’s path forward, she clarified that these specific job cuts are not a direct result of AI adoption[1][2].
  • Inflation and energy costs are cited as ongoing pressures impacting the company’s bottom line[2][3].
  • This round of layoffs follows Telstra’s decision to remove 2,800 positions last year in an effort to save up to A$350 million[2][3].

Commitment to Transparency and Reskilling

Vicki Brady stated, “As a connectivity and digital infrastructure business with a long history of innovation, this is a massive opportunity for us.” She reinforced the company's commitment to transparency and supporting workers through the transition, adding, “Our workforce will look different in 2030 as we develop new capabilities and find new ways to leverage technology — including AI — and we have to stay focused on becoming more efficient”[1].

Future of Telstra’s Workforce

Looking ahead, Telstra anticipates a leaner, more technologically skilled workforce as it invests in next-generation digital infrastructure and AI-led solutions. The company has initiated strategic partnerships and investments, such as a joint venture with Accenture estimated at A$100 million annually for seven years, designed to modernize data and AI platforms[3].
  • Telstra intends to reduce its data and AI suppliers from 18 to two, consolidating efforts through major partnerships with Accenture and Quantium (an Australian AI company)[3].

Ongoing Transformation

As Telstra continues to adapt to technological advancements and market demands, further changes in its workforce are expected over the coming years. The company maintains that employee welfare and clarity will remain central throughout this transformation[1][2][3].

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