Telstra may cut more after 1,100 staff axed

Summary:Even more job cuts could be on the horizon at Telstra after a decision to fire more than 1,000 workers.

Telstra chief operations officer Brendon Riley has said that the telco will continue to get smaller for years as it focuses on growth areas.

"Overall, I would say probably every year, we will get a little bit smaller," he told Fairfax Radio in Melbourne on Thursday.

"I don't know about indefinitely, but I think certainly for the next few years that will be the case."

The telco's decision to axe jobs has been criticised by unions that say the number of faults on Telstra's copper network — and its profits — are as high as ever.

However, Telstra said the cuts to its operations business are necessary to simplify the company and focus on growth.

A significant portion of the 1,100 job losses announced on Wednesday are expected to include fixed-network technicians. Riley said that front-line customer service staff will not be cut.

"I would concede that we've still got a long way to go to improve our customer service," he said.

He said that the planned job cuts are all in back-office roles or declining areas.

For instance, he said that Telstra will consolidate four units that currently do reporting, financial management, and scheduling.

"We've got to continue to re-create and reshape Telstra so it is more efficient, so it provides better customer service and responds to what is a very dynamic and changing industry."

Telstra management will meet with union officials later on Thursday to discuss the coming cuts.

Topics: Telcos, IT Employment, Telstra

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