Telstra is mulling axing "around 900" operations jobs over the next financial year as it grapples with the prospect of declining sales.
The Australian reported that the job losses were revealed yesterday by the Communications, Electrical and Plumbing Union (CEPU).
A Telstra spokesperson confirmed to the paper that “current planning indicates a figure of around 900 [job cuts]” would take place in the year ending June 2011.
He also noted that Telstra has nearly completed its A $11.9 billion ($11.0b) IT systems transformation project and as such “there is less work required to design, build and maintain” Telstra’s networks.
The fact is however that Telstra is under a lot of pressure to grow its revenue amid falling fixed-line subscribers and tougher mobile competition.
The company is forecasting that its revenues will decline in the second half of this fiscal year [ending June].
“Telstra is trying to become more efficient, it’s still got the legacy of being an incumbent,” Ovum analyst, Nathan Burley, told telecomasia.net.
“As its top-line falls, it will have to shed costs, and part of that will be job losses.”
Telstra’s head-count has fallen from 57,000 in 1998 to 40,000 full-time staff last December.
Telstra shares were down 0.6% this morning.