Telstra job cuts to hit NSW and Vic hardest

Telstra is cutting staff to save costs

Telstra has confirmed it will axe 1,400 Australian workers.

According to the CWU national assistant secretary, John O'Donnell, the union had been under the impression that the cuts are set to involve around 1500 jobs.

Chief executive Andrew Penn sent a note to staff this morning informing them that staff would be cut from most parts of Telstra's business and from all levels of seniority and from all states and territories.

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In March, the CWU said that Telstra had kick-started plans to cut staff in a number of divisions as it looks to automate certain employee functions and outsource others.

Telstra has previously spoken about the need to restructure its business and fill a $2 billion to $3 billion hole in earnings before interest, tax, depreciation and amortisation following the completion of the rollout of the national broadband network in 2020.

"We need accurate details from Telstra".

The cuts are nationwide, will affect most business units andwill happen over the next six months, he added.

He also said Telstra needed "new and different skills" to support new technologies and services in the areas of digitisation, software, robotics, and artificial intelligence.

Telstra shares are trading marginally lower - by 0.1 per cent - at $4.38 at 3:28pm (AEST).

While Penn claims to believe the company has a "great future" ahead of it, he stressed that, for it to be successful, the telco can't afford to operate as is has always done.

"As a company, we are facing rapidly changing customer expectations, intensified market pressures and increasing competition, disruptive technology changes and shifting industry economics", he said.

All divisions are affected, with the company meeting with Union representatives on Wednesday. "It says a lot about how much value the company really puts on consultation".

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