Telstra, Australia’s largest telecommunications company, is expected to cut hundreds of jobs this week as part of a cost-reduction strategy.

The layoffs will affect multiple departments, though the company has not officially commented.

The company employs about 31,000 full-time-equivalent workers globally.

However, it has not yet issued a public statement regarding the layoffs.

This move follows last year’s reduction of 2,800 jobs, which aimed to save up to AU$350 million (US$228.6 million) due to inflation and rising energy costs.

Telstra recently introduced a five-year plan called  “Connected Future 30” strategy prioritizes AI and data centers, which may further reduce workforce needs.

🔗 Source: The Sydney Morning Herald

🧠 Food for thought

1️⃣ Telstra’s job cuts reflect a decades-long downsizing pattern, not just AI strategy

Telstra’s planned staff reductions continue a long-established pattern of workforce contraction dating back decades.

The company has reduced its workforce by 53,000 employees over a two-decade period according to historical records 1, demonstrating this isn’t a new phenomenon but rather a continuation of Telstra’s ongoing restructuring efforts.

In 2018 alone, the company announced plans to eliminate 8,000 positions over three years 2, representing a quarter of its workforce at that time.

Last year’s cut of 2,800 workers to save $350 million follows this established trend, though now with AI serving as a new justification for continuing the same cost-cutting strategy.

While the technology and reasoning have evolved from previous restructuring efforts, the fundamental approach of reducing headcount to improve financial performance remains consistent throughout Telstra’s corporate history.

2️⃣ Telstra mirrors broader tech industry pattern of AI investment coupled with workforce reduction

Telstra’s simultaneous investment in AI technology while reducing staff reflects a pattern occurring across the global technology sector.